HP Inc. (NYSE: HPQ) today announced the release of its Sustainable
Bond Framework, which the company will use to issue bonds to help
finance HP projects that contribute to a more sustainable and just
future.
The company also announced the pricing of its inaugural
sustainability notes issuance, totaling $1 billion, as part of a $2
billion overall debt offering. The sustainability notes are
designed to empower investors to join HP in tackling important
economic, social and sustainability issues.
The sustainability notes offering follows a series of recent
announcements by HP setting some of the most aggressive and
comprehensive environmental and social goals in the technology
industry, including a pledge to achieve net zero carbon emissions
across its value chain by 2040 and gender parity in management
roles by 2030.
“The long-term success of our business will be inextricably
linked to our ability to help solve the challenges facing the
planet and society as a whole,” said Chief Financial Officer Marie
Myers. “HP has long been a purpose-driven brand that’s anchored in
strong corporate values. This offering is an important part of our
overall approach to aligning the needs of our business with the
needs of the world around us.”
Sustainable Bond FrameworkHP’s Sustainable Bond
Framework is built on three pillars of Sustainable Impact:
Climate Action (Planet) In April 2021, HP announced an ambitious
set of climate action goals. Highlights include:
- Achieve net zero
greenhouse gas emissions across HP value chain by 2040, beginning
with Supplies business achieving carbon neutrality by 2030
- Reach carbon
neutrality and zero waste in HP operations by 2025i
- Reach
75 percent circularity for products and packaging by
2030ii
- Counteract
deforestation for non-HP paper used in our products and print
services by 2030iii
Human Rights (People) In May 2021, HP announced a series of
ambitious goals to drive a more diverse, equitable and inclusive
technology industry. HP is the first Fortune 100 tech company to
commit to 50/50 gender equality in leadership by 2030.iv Additional
goals include:
- Achieve greater than
30 percent technical women and women in engineering by
2030
- Meet or exceed labor
market representation for racial/ethnic minorities in the U.S. by
2030
- Maintain higher than
90 percent rating on internal inclusion index for all employee
demographics annuallyv
- Reach one million
workers through worker empowerment programs by 2030
Digital Equity (Community)The final set of goals designed to
help HP become the world’s most sustainable and just technology
company is focused on digital equity and will be launched in tandem
with the 20th annual Sustainable Impact Report on June 9, 2021.
The HP Sustainable Bond Framework is in alignment with the four
components of the Sustainability Bond Guidelines (2018), Social
Bond Principles (2020) and Sustainability Bond Guidelines (2020)
(collectively, the “Principles”). Sustainalytics, an independent
consultant with recognized environmental and social expertise, has
provided a Second-Party Opinion (“SPO”) on the expected
environmental benefit of HP’s Sustainable Bond Framework as well as
its alignment with the Principles. The SPO is available on the SPO
provider’s website:
https://www.sustainalytics.com/corporate-solutions/sustainable-finance-and-lending/published-projects/project/hp-inc/hp-inc.-sustainable-bond-framework-second-party-opinion-(2021)/hp-inc.-sustainable-bond-framework-second-party-opinion-(2021).
Details of the HP Sustainable Bond Framework include:
- A committee with representatives from HP’s Sustainability,
Treasury and Finance teams will be responsible for the assessment
and selection of eligible projects, on an annual basis, to ensure
alignment with the Framework.
- All eligible projects that are allocated funding from the
proceeds of the issuance of sustainability notes will follow an
internal process that includes final review and approval by the
Chief Sustainability and Social Impact Officer.
- HP will publish a Sustainable Bond Report, beginning in 2022
until the full allocation of the net proceeds from the sale of any
Sustainable Bonds, on the website together with the annual
Sustainable Impact Report that will include:
- the amount of net proceeds from the sale of any Sustainable
Bonds by HP that have been allocated to one or more eligible
projects either individually or by category, subject to
confidentiality considerations;
- the list of the eligible project categories with a selection of
brief descriptions;
- the expected impact metrics, where feasible; and
- the outstanding amount of net proceeds from the sale of any HP
Sustainable Bonds yet to be allocated to any eligible projects at
the end of the reporting period.
- To view the HP Sustainable Bond Framework, and for more
information, visit
https://investor.hp.com/governance/sustainability/.
As outlined in the Sustainable Bond Framework, HP intends to
allocate the proceeds of the sustainability notes to fund projects
across eight key areas of the business including: renewable energy,
green buildings, energy efficiency, clean transportation, pollution
prevention and control, the circular economy, natural resources and
land use, and socioeconomic advancement and empowerment.
At HP, the value-driven culture unites global teams and partners
to give them confidence in HP’s ability to accelerate progress and
foster a more sustainable, equitable and just society. These values
are backed by strong leadership, a clear Code of Conduct, robust
compliance systems and employees training programs.
About HPHP Inc. creates technology that makes
life better for everyone, everywhere. Through our product and
service portfolio of personal systems, printers, and 3D printing
solutions, we engineer experiences that amaze. More information
about HP Inc. is available at http://www.hp.com.
The sustainability notes are being offered only to qualified
institutional buyers in reliance on Rule 144A under the Securities
Act or outside the United States to persons other than “U.S.
persons” in compliance with Regulation S under the Securities Act.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale is unlawful. The offer and sale of the
sustainability notes will not be registered under the Securities
Act or applicable state securities laws and, unless so registered,
the sustainability notes may not be offered or sold in the United
States or to U.S. persons except pursuant to an exemption from the
registration requirements of the Securities Act and applicable
state securities laws.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Any such statements
involve risks, uncertainties, and assumptions. If such risks or
uncertainties materialize or such assumptions prove incorrect, the
results of HP Inc. (“HP”) and its consolidated subsidiaries could
differ materially from those expressed or implied by such
forward-looking statements and assumptions. All statements other
than statements of historical fact are statements that could be
deemed forward-looking statements, including any statements of the
plans, strategies, and objectives of HP for future operations; any
statements of expectation or belief; and any statements of
assumptions underlying any of the foregoing. Risks, uncertainties,
and assumptions include the possibility that the company may not
achieve its environmental and social goals; that the company may
not successfully identify and/or complete eligible projects; and
other risks that are described in HP’s SEC reports, including but
not limited to the risks described in HP’s Annual Report on Form
10-K for its fiscal year ended October 31, 2020 and HP’s other
filings with the Securities and Exchange Commission. HP assumes no
obligation and does not intend to update these forward-looking
statements.
HP’s Investor Relations website at investor.hp.com contains a
significant amount of information about HP, including financial and
other information for investors. HP encourages investors to visit
its website from time to time, as information is updated, and new
information is posted.
i Zero waste operations: eliminate non-hazardous waste to
landfill in all HP direct operations by 2025. Includes all HP owned
and managed sites worldwide. Zero waste is defined by the UL or
TRUE certification standard.ii Percentage of HP’s total annual
product and packaging content, by weight, that will come from
recycled and renewable materials and reused products and parts by
2030.iii Fiber by weight will be 1) certified to rigorous
third-party standards, 2) recycled or 3) balanced by forest
restoration, protection, and other initiatives through HP’s Forest
Positive Framework. Paper does not include fiber-based substrates
for HP industrial presses not listed in HP Media Solutions Locator
catalogues.iv “Leadership” is defined as director level and up at
HP. We expect that gender identity will remain a key topic in many
parts of the world. In the future, HP may take in account of more
data and those who identify as female will be counted towards the
50/50 gender equality goal.v Annually, HP employees fill out a
survey called Voice Insight Action (VIA) to understand overall
employee engagement including their sense of belonging in the
company.
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