HP Inc. Announces Sustainable Bond Framework and Inaugural Sustainability Notes Offering
PALO ALTO, Calif., June 8, 2021 /3BL Media/ – 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 Framework
HP’s Sustainable Bond Framework is built on three pillars of Sustainable Impact:
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 2025[i]
- Reach 75 percent circularity for products and packaging by 2030[ii]
- Counteract deforestation for non-HP paper used in our products and print services by 2030[iii]
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 annually[v]
- 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 HP
HP 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.
Disclaimers
[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.
MEDIA CONTACTS
HP Inc. Media Relations
MediaRelations@hp.com
HP Inc. Investor Relations
InvestorRelations@hp.com
