HPE Launches World’s First Supply Chain Program Based on Climate Science
(3BL/JustMeans) We all use devices that are connected to the internet. The demand for those devices is only going to increase. The trend is for more and more devices to increase the demand for computing and data storage. An estimated 100 billion connected devices in 2020 will create an even greater demand for computing and data storage than the current infrastructure can handle.
Hewlett Packard Enterprise (HPE) is working to create a sustainable ICT supply chain. HPE recently announced the launch of the first comprehensive supply chain management program based on climate science in the world. The program will provide its suppliers with tools to develop a plan to reduce its GHG emissions. The company hopes that the program will serve as a model for the industry. Through the program, 80 percent of the company’s manufacturing suppliers will be required to set science-based emissions reduction targets for their operations by 2025. The goal is for the manufacturing suppliers to avoid 100 million tons of emissions, equivalent to taking 21 million cars off the road for a year. As part of the program, HPE will also reduce its manufacturing-related GHG emissions on an absolute basis within its supply chain by 15 percent by 2025.
The program will help suppliers set and meet science-based targets (SBTs) by providing them with tools HPE developed with experts at BSR and POINT380. Suppliers will be incentivized to set and meet SBT goals through an assessment with HPE’s social and environmental responsibility (SER) scorecard which will tie their performance into the company’s procurement decisions.
Setting a goal for its supply chain to reduce emissions is good for the company’s bottom line. The average internal rate of return for emissions reductions within the IT sector is almost 40 percent. The new goal also adds to the company’s other climate change targets, which includes a 100 percent renewable energy target and increasing the efficiency of its products 30 times by 2025.
HPE already has solar photovoltaics (PV) at 11 of its sites which avoid about 4,138 tons of carbon dioxide equivalent (CO2e). In 2015, the company signed a 12-user power purchase agreement for 111 megawatts (MW) of wind power, which is enough to power its data center operations in Texas and will avoid over 340,000 tons of CO2e a year.
HPE is working to make its data centers more efficient. To that end, it closed 101 older data centers from 2010 to 2015 and consolidated them into more efficient state-of-the-art facilities. Doing so reduced its physical data center footprint by over 55,000 square meters and avoided over 151,000 tons of CO2e a year, which equals removing over 32,000 vehicles from the road for a year. In 2016, HPE received two awards: one for Data Center Transformation Project of the Year in the 2016 U.S. and another by Canada Datacenter Dynamics Awards.