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CHANGING THE EQUATION THE IMPACT OF HP GLOBAL CITIZENSHIP IN 2009—AND BEYOND ENERGY: BUSINESS CONSTRAINT OR CATALYST? See page 6 HOW TECH IS HELPING CURE HEALTHCARE See page 14 TRANSFORMING EDUCATION TO FUEL ECONOMIC GROWTH See page 18

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Page 1: Changing the equation - Hewlett Packard · 2020-01-23 · Hewlett-Packard (Canada) Co . hp Canada’s evironmental n awards and reCognition Cs Greenest AnAdA’ employers HP Canada

Changing the equationthe impaCt of hp global Citizenship in 2009—and beyond

energy: business Constraint or Catalyst?

See page 6

how teCh is helping Cure healthCare

See page 14

transforming eduCation to fuel eConomiC growth

See page 18

Page 2: Changing the equation - Hewlett Packard · 2020-01-23 · Hewlett-Packard (Canada) Co . hp Canada’s evironmental n awards and reCognition Cs Greenest AnAdA’ employers HP Canada

Global citizenship overview . . . . . . . . . . . . . . . . . . . . . . . . . 2Letter from CEO Mark Hurd . . . . . . . . . . . . . . . . . . . . . . . . . 3

Words from HP Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . 4HP Canada Environment Recognition . . . . . . . . . . . . . . . . . . . 5

Changing the equation: Energy . . . . . . . . . . . . . . . . . . . . . . 6Reducing data center energy use . . . . . . . . . . . . . . . . . . . . . 7

Cool data center design . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 steps to save energy, paper and money . . . . . . . . . . . . . . . 9

HP global citizenship in action . . . . . . . . . . . . . . . . . . . . . . 10Responsible supply chain management . . . . . . . . . . . . . . . . 12

Changing the equation: Healthcare . . . . . . . . . . . . . . . . . . . 14Harnessing the information explosion . . . . . . . . . . . . . . . . . 16

Changing the equation: Education . . . . . . . . . . . . . . . . . . . 18Changing the equation: HP Canada . . . . . . . . . . . . . . . . . . 20

in 2010, international data Corporation (idC) estimates the world will Create 988 exabytes of data—18 million times the amount of information in all the books ever written.1

See page 16

welCome This publication complements HP’s annual report detailing our programs, performance and goals across a wide array of issues that make up global citizenship . Inside you’ll find highlights from 2009 along with essays exploring issues reshaping business, society and the environment .

Changing the equation

Powerful forces are transforming how the world lives and works, placing unprecedented demands on everything from our health-

care and education systems to our energy grid . We need bold thinking, new solutions, a fresh approach . Technology holds the

key . By using resources more efficiently, harnessing the power of information and sparking wider innovation, we can use technol-

ogy to meet rising social and environ mental needs and change the equation for generations to come .

Page 3: Changing the equation - Hewlett Packard · 2020-01-23 · Hewlett-Packard (Canada) Co . hp Canada’s evironmental n awards and reCognition Cs Greenest AnAdA’ employers HP Canada

the exodus of

eduCators and

researChers Costs afriCa

an estimated $4 billion

a year in eConomiC

growth.9

See page 19

healthCare

$1.2 trillion

An estimated $1 .2 trillion is wasted annually in the U .S . healthcare system, with redun-

dant procedures and inefficient administra-tion cited as two of the largest reasons .5 See page 14

10–15%In the U .S . alone, e-health solutions could cut

healthcare costs between 10 and 15 per-cent .6 See page 14

eduCation

71 million

Worldwide, 71 million children of primary school age aren’t in school,7 leav-

ing them unprepared to get ahead in today’s knowledge economy . See page 18

16%An estimated 776 million adults—16% of the

global adult population—lack basic literacy skills .8 See page 18

AFr

iCA

energy

1.15 billion

The global middle class will triple to 1 .15 billion by 2030,3 intensifying demand for energy and

natural resources . See page 6

80%Most scientists agree that global greenhouse

gas emissions must be cut by 80% by 2050 to mitigate the worst effects of climate change .4 See page 6

25%Just 25% of the world’s population is online .2 As

billions more get access to mobile devices and the Internet, that figure will skyrocket, generating

enormous volumes of data . See page 16

Changing the equation

Powerful forces are transforming how the world lives and works, placing unprecedented demands on everything from our health-

care and education systems to our energy grid . We need bold thinking, new solutions, a fresh approach . Technology holds the

key . By using resources more efficiently, harnessing the power of information and sparking wider innovation, we can use technol-

ogy to meet rising social and environ mental needs and change the equation for generations to come .

Page 4: Changing the equation - Hewlett Packard · 2020-01-23 · Hewlett-Packard (Canada) Co . hp Canada’s evironmental n awards and reCognition Cs Greenest AnAdA’ employers HP Canada

Our commitment is shaped by issues—such as meeting energy needs of a fast-growing global population, responding to climate change, managing the information explosion and transforming education— that cut across industries, economies and borders, and require new levels of leadership, innovation and collaboration .

HP is responding by focusing where we believe we can apply our technologies, resources and expertise for greatest impact . From how we develop products to how we run our operations, manage our supply chain and engage with stakeholders, global citizenship drives us to accept challenges and pursue solutions that fuel ongoing innovation and growth .

Read more about HP’s global citizenship strategy and programs at www.hp.com/go/globalcitizenship.

as one of hp’s seven Corporate objeCtives, global Citizenship has long been integral to the suCCess of our business. it drives us to meet higher standards of integrity, Contribution and aCCountability as we align our business goals with our impaCts on soCiety and the environment.

2 / Changing the equation: the impaCt of hp global Citizenship in 2009—and beyond

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At HP, we are committed to aligning our business goals with our impacts on society and the environment . Global citizenship influences how we run our business, holding us to high standards of integrity, ethics, contribution and accountability in everything we do . Through rigorous internal policies and active engagement with outside stake-holders, we work to ensure that we live up to our ideals .

In 2009, the global economy experienced the worst recession in a generation . At HP, we set a goal of controlling discretionary spending, while keeping the muscle of the organization intact . Thanks to the hard work and talent of HP employees, we were able to maintain forward progress on our core strategy . That includes our commitment to global citizenship, which we believe becomes even more important in difficult times .

with the expansion of our enterprise serviCes Capabilities, hp Can do more than ever to help our Customers build sustainable businesses.

We are working in areas such as education, healthcare and energy to harness the power of information, using IT to change the equation and help create a more efficient, environmentally responsible and equi-table world . And in HP Labs, we’re working on the future . Innovations like nanoscale sensors, breakthrough software for analytics and knowl-edge discovery, and data centers with net-zero environmental impact will be the building blocks of tomorrow’s sustainable society .

We are also improving HP’s own products and operations . Last year, we announced that by the end of 2011, we will reduce the energy con-sumption and associated greenhouse gas emissions of all HP products combined by 40 percent compared with 2005 levels . We are leverag-ing the power of our supply chain to protect both the environment and human rights . And through HP’s Office of Global Social Innovation, we are developing new ideas and approaches for education and healthcare delivery . Around the world, our efforts are supported by HP employees who volunteer in their local communities and donate in con-junction with HP matching grants to the causes they care about most . At HP, we also recognize that these issues are bigger than any single organization can address on its own, so we support the UN Global Compact to promote higher standards, and we cultivate partnerships with industry peers, governments and NGOs to achieve our shared objectives .

Together, these coordinated initiatives have helped put HP at the fore-front of global citizenship . Corporate responsibility magazine recently recognized our efforts with the No . 1 ranking in the annual 100 Best Corporate Citizens List, and newsweek ranked HP as the greenest company among the 500 largest corporations in America .

In the years ahead, we are well positioned to lead the evolution of our industry and create extraordinary opportunities for our customers, our stockholders, our people and the world around us .

see hp’s full global Citizenship report at www.hp.Com/go/report / 3

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CH

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We work hard to do business in a socially and environmentally responsible way—advancing the causes of human rights, environmental sustainability, supply chain responsibility, and more .

At HP Canada, we worked to meet these goals in numerous ways in 2009 -- partnering with World Wildlife Fund Canada to share best practices in how we minimize our environmental footprint; awarding technology, money and professional development to high schools across Canada; joining the Global Forest & Trade Network in North America (GFTN-NA); encouraging employee engagement initiatives that supported our local communities, and much more .

We are extremely proud of the contributions HP and our employees are making to the communities in which we live and work .

peter galanisPresident and Chief Executive OfficerHewlett-Packard (Canada) Co .

lloyd bryantVP & General ManagerImaging and Printing Group Environmental ProgramsHewlett-Packard (Canada) Co .

at hp Canada, soCial responsibility is not just an important business initiative.

It’s a statement of our values, a measure of our commitment to society and the planet we all share, and the foundation for responsible leadership in an increasingly interdependent world .

4 / Changing the equation: the impaCt of hp global Citizenship in 2009—and beyond

Page 7: Changing the equation - Hewlett Packard · 2020-01-23 · Hewlett-Packard (Canada) Co . hp Canada’s evironmental n awards and reCognition Cs Greenest AnAdA’ employers HP Canada

We work hard to do business in a socially and environmentally responsible way—advancing the causes of human rights, environmental sustainability, supply chain responsibility, and more .

At HP Canada, we worked to meet these goals in numerous ways in 2009 -- partnering with World Wildlife Fund Canada to share best practices in how we minimize our environmental footprint; awarding technology, money and professional development to high schools across Canada; joining the Global Forest & Trade Network in North America (GFTN-NA); encouraging employee engagement initiatives that supported our local communities, and much more .

We are extremely proud of the contributions HP and our employees are making to the communities in which we live and work .

peter galanisPresident and Chief Executive OfficerHewlett-Packard (Canada) Co .

lloyd bryantVP & General ManagerImaging and Printing Group Environmental ProgramsHewlett-Packard (Canada) Co .

hp Canada’s

environmental awardsand reCognition

CAnAdA’s Greenest employersHP Canada was named one of Canada’s Greenest Employers by Mediacorp Canada in 2009 . The award honours employers that lead the nation in bring-ing environmental values into their culture . HP’s commitment to the environ-ment dates back to our founders, Bill Hewlett and Dave Packard . HP was recognized as being an environmental pioneer in the industry and for provid-ing employees with a host of opportunities to support environmental initiatives at work .

For example, employees have access to free electronic recycling on-site, telecommuting opportunities and an environmental education program . In addition, HP employees can get involved in a wide range of environmen-tal initiatives at work: from the Green Advocates program; to volunteering for HP-sponsored programs supporting environmental organizations, such as Learning for a Sustainable Future, Waste Reduction Week, and the World Wildlife Fund; to providing a wealth of tools on the company intranet on how to reduce personal carbon footprints, and much more .

environmentAl printinG AwArdsIn 2009, HP received three Gold awards at PrintAction’s fourth annual envi-ronmental printing awards, which recognizes environmental innovation in printing .

The “Most Environmentally Progressive Manufacturing Process” award rec-ognized the HP process of utilizing post-consumer recycled plastics to create new original HP inkjet print cartridges in an industry-leading “closed loop” recycling process .

The “Most Environmentally Friendly Product,” was won by the HP Designjet L65500, a new commercial printer that uses latex inks, which eliminates the use of solvents in the printing process .

Finally, HP won the “Most Environmentally Progressive Vendor in Canada” award, which recognizes the holistic strategy HP employs to reduce its impact on the environment .

top 100 employersIn 2009 HP Canada was recognized as one of Canada’s Top 100 employers for an impressive eighth consecutive year . The awards recognize the nation’s most progressive and forward-thinking employers . HP was also recognized for the third consecutive year as one of Canada’s Best Diversity Employers for 2009 . And to round out the hat trick, HP Canada was also recognized as one of Greater Toronto’s Top 90 Employers .

see hp’s full global Citizenship report at www.hp.Com/go/report / 5

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40% HP will reduce energy consumption and associated GHG emissions of all products 40% below 2005 levels by the end of 2011 .

HP purchased approximately 131 million kWh of renewable energy worldwide in 2009 .131 m

illi

on

kwh

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ENER

GY

a low-Carbon dietfor a power-hungry planet

With global demand forecast to increase by over 40% by 2030, the challenge is clear: we must conserve and produce more energy sustainably while emitting significantly less greenhouse gas .10

Technology offers an answer . While the IT industry contributes 2 percent of global carbon emissions, the larger opportunity is using technology to lower the other 98 percent . HP is apply-ing IT in new ways to help individuals, enterprises and indus-tries reduce their carbon footprint by increasing transparency, improving efficiency and transforming existing processes .

INfORmATION IS POwER

Technology can help us understand how we’re using energy— insight that can trigger changes in processes and behavior .

For example, the Advanced Meter Infrastructure solution employs HP technology to monitor energy consumption in real time, so utilities and customers can anticipate and reduce demand .

We’re also helping businesses and consumers measure energy and emissions with our online Carbon Footprint Calculator for printers and PCs . For more a comprehensive view, HP’s Carbon Impact Assessment Service takes into account the energy use and associated emissions of an entire IT environment .

INCREASE EffICIENCy

Technology can save energy by boosting efficiency; innova-tions in HP’s high-volume HP desktop and notebook PC families

are on target to save 1 billion kWh of electricity by 2011, rela-tive to 2008 . And we’re rethinking power-hungry data centers from the ground up (see following page) to dramatically reduce consumption and carbon emissions .

Nanotechnology offers even greater promise . An HP Labs initiative dubbed Central Nervous System for the Earth (CeNSE) will embed billions of networked sensors in the world’s infra-structure—buildings, transportation systems, agricultural fields—to monitor energy use and align supply with demand, decreasing waste and reducing risk in the electricity grid .

TRANSfORm HOw THE wORld lIvES ANd wORkS

Beyond increasing efficiency, the ultimate goal is to replace energy- and resource-intensive processes and behaviors with sustainable ones .

In this area, HP is advancing ways to use light rather than wire to transmit data . It’s more efficient (and reduces demand for mining copper) while delivering greater bandwidth . We’re integrating this technology in HP blade servers, and by 2017 we’ll be using it for intra-chip communication .

HP’s Halo Collaboration Studios save energy and reduce emissions by providing the advantages of meeting in person without the environmental toll—and costs—of travel . Avoiding one round-trip flight from New York to London saves 3,000 pounds of CO2 per person . Think of the impact if just a frac-tion of the thousands of business trips taken each day were replaced by Halo .

6 / Changing the equation: the impaCt of hp global Citizenship in 2009—and beyond

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HP’s goal is to double voluntary purchases of renewable energy to 8% by 2012 .2×

outside voiCes

amory b. lovinsChairman & Chief

sCientist, roCky mountain institute

Ubiquitous IT has changed the lives of billions of people .

In 2005, servers (including their cooling and auxiliary

equipment) used 1 .2 percent of U .S . and 0 .8 percent of global

electricity; all IT, telecoms and office equipment used 3 per-

cent of U .S . electricity . However, IT’s growth is increasingly offset by

power-sipping hardware, server-sharing software, terse code, and

efficient power supplies and cooling systems .

For example, the new Wynyard data center that my team co-designed with

EDS (now part of HP) got 16-fold more computing per kWh than conventional

designs, and cost one-tenth less to build . Full exploitation of the identified opportuni-

ties would have boosted energy productivity by about 80-fold at half normal capital cost .

Moreover, IT probably saves far more energy indirectly than it uses directly . Computers opti-

mize car engines . Electronic controls improve buildings and factories . Computer analysis

fine-tunes nearly everything that makes or uses energy . The Internet itself probably saves energy:

videoconferences displace flying, a Google search releasing 0 .2 grams of carbon displaces

thousands-fold more carbon released by driving to the library, and e-commerce reduces retail and ware-

house space and shipping .

IT is also enabling a dramatic shift of power genera-tion from fossil and nuclear fuels to renewables . In

2008, the world invested more in renewable than in fossil-fueled electricity generation; renewables (except

big hydro) plus cogeneration produced two-thirds of the world’s new electricity . IT is both using energy with

elegant frugality and enabling huge energy savings and climate-safe sources . Together, IT and energy are creating

abundance by design . Their convergence marks one of the century’s greatest business opportunities .

While energy-efficient data centers are receiving heightened attention, a recent survey found some IT directors still rank energy as a low priority .11 Here are five reasons why they should reconsider:

50%Cost to cool a typical data center—in other words, it costs as much to cool as to compute .14

60%Data center capacity that can be wasted due to poorly designed layouts and airflow .15

45%Estimated energy savings in the data center due to energy-management best practices combined with IT consolidation .16

powering down: why reduCe data Center energy use

DOUBLEGrowth in data center energy consumption over the past five years . And it’s expected to double again in the next five to over 100 billion kWh—at a cost of $7 .4 billion annually .12

30×How much more it costs annually to power a data center compared with a commercial office building, on a square-foot basis .13

Up

to

see hp’s full global Citizenship report at www.hp.Com/go/report / 7

Page 10: Changing the equation - Hewlett Packard · 2020-01-23 · Hewlett-Packard (Canada) Co . hp Canada’s evironmental n awards and reCognition Cs Greenest AnAdA’ employers HP Canada

Cool data Center designAs a result of their rapidly rising energy consumption, data centers worldwide now account for more emissions than Argentina and the Netherlands combined .17

An innovative facility in Wynyard, UK, designed and managed by HP, is a notable step toward reversing that trend . We’ve applied a systems-based approach, taking advantage of local conditions to reduce environmental impact . The Wynyard data center is expected to reduce energy consumption by 40 percent, cut emissions and save up to $15 million annually .

HP’s Wynyard data center opened for business in February 2010 . The 360,000- square-foot facility is one of the largest in Europe . Wynyard won the Green Datacentre Award in 2008 in recognition of its environ-mentally responsible design .

The roof collects rainwater, using it for landscaping and firefighting systems . Rainwater is also filtered and stored in 80,000-liter tanks and used to boost humid-ity levels when the air is too dry .

Cold North Sea air is circulated throughout the data center, cooling equipment and allowing the facility to go without air conditioning 97% of the time .

Walls and server racks are white, a design choice that conserves energy by reducing the need for lighting and saves about $7 million a year .

To save energy, sensors turn lights on only when needed . Lights are angled at 45 degrees to the server rows, brightening the facility and reducing the number of fixtures needed .

Wynyard has a Power Usage Effectiveness score of 1.2; the closer to 1 .0, the better . A typical data center earns a 2 .0, while most sustainable facilities have scores of about 1 .7 .

Reflective material on the roof deflects sunlight to ensure that the building absorbs as little heat as possible . wind-powered sources provide 10% of the facility’s energy .

In a typical year, the facility is expected to produce 8,770 tonnes of CO2, roughly half of what a comparable data center would produce .

#1 HP’s ranking in both newsweek’s Green Rankings of America’s 500 largest corporations and the Climate Counts Company Scorecard .

HP’s goal is to save customers 1 billion kWh by 2011 through improved energy efficiency of HP’s high-volume HP desktop and notebook PC families, relative to 2008 .1 bi

llio

n kwh8 / Changing the equation: the impaCt of hp global Citizenship in 2009—and beyond

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1 ASSESS ImPACT

First identify inefficien-cies . The typical ratio of users to printing devices is 1:3, when most net-worked devices can handle more . Redundant devices waste energy .

CUT ENERGy USE

An outdated fleet wastes energy . HP helped 3M optimize its printing infra-structure, reducing con-sumption by an estimated 79 .9%, saving $1 .2 mil-lion over three years .

RECyClE mORE

Storing old IT in a closet is a security risk . And tossing print cartridges in the trash can harm the environment . HP recy-cling programs have recovered over 2 .04 bil-lion pounds of electronics and HP print cartridges since 1987 .

GO dIGITAl

Paper-based workflows slow productivity and waste resources . Caja Madrid implemented an HP digital document delivery system and cut paper use 15% while improving customer service .

2 STOP wASTING PAPER

Setting duplex printing as its default helped one Fortune 500 company conserve an estimated 800 tons of paper annually .

3 4 5

hp Carbon footprint CalCulatorWith the web-based HP Carbon Footprint Calculator, you can measure how applying power-saving technologies, activating power-saving set-tings and consolidating devices can lower the energy use and carbon footprint of PCs, print-ers and other devices . To learn more, visit www .hp .com/go/carbonfootprint .

a logiCal approaCh to printingYears of acquisitions left IT services and business provider Logica with little con-trol over printers and copiers in remote offices . HP Managed Print Services helped reduce its overall printing costs by an estimated 39% and lower support calls by 50% . An added bonus: a more environmentally sound approach to printing, which has helped the company use an estimated 60% less paper and 32% less energy .*

*Printing cost, support call data, and paper and energy savings are estimates reported by Logica to demonstrate the advantages of HP Managed Print Services .

5 steps to save energy, paper and moneyAn average printing fleet serving 700 people uses over 33,000 kWh, generates nearly 190,000 pounds of CO2 and costs $700,000 annually .18 The opportunities to reduce costs and environmental impact are substantial .

The volume of electronic products and supplies HP recovered for recycling in 2009, including 61 million print cartridges .112,000 to

nn

esIn 2009, HP decreased total energy use by 9% compared with 2008 .9%

see hp’s full global Citizenship report at www.hp.Com/go/report / 9

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A billion people rely on HP technology every day. We operate in approximately 170 countries with a workforce of over 300,000. And our supply chain is the largest in the IT industry, encompassing more than 700 production suppliers that employ over 300,000 workers. In ways large and small, HP’s commitment to global citizenship touches countless lives, businesses and communities worldwide every moment of every day.

CIUdAd JUAREZ, mEXICO

Workers at an HP supplier participate in an educational session about preventative healthcare, part of the HERproject, a program to help women in the global supply chain access healthcare services .

SAO PAUlO, BRAZIl

A large development company upgrades its data center, doubling its capacity while cutting its energy consumption and associated greenhouse gas emissions by installing efficient HP blade servers and advanced HP cooling solutions .

dETROIT, UNITEd STATES

The third-largest water and sewerage utility in the U .S . uses HP software to track and manage consumption in real time, helping conserve water and energy while reducing costs .

dAkAR, SENEGAl

A scientist collaborates with peers worldwide by tapping into powerful grid computing technology provided by HP, slowing African “brain drain” by enabling her to advance research without leaving her native country .

hp global

10 / Changing the equation: the impaCt of hp global Citizenship in 2009—and beyond

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TRONdHEIm, NORwAy

A nurse responds to a patient call on her medical data assistant—based on an HP mobile device—and wirelessly accesses a smart network designed by HP to alert the attending physician to an emergency .

SHENZHEN, CHINA

The Shenzhen Stock Exchange, serving 35 million investors, relies on HP information security control solutions to safeguard $800 million in daily transactions .

JAkARTA, INdONESIA

Rather than boarding an airplane, a product devel-opment team gathers in an HP Halo telepresence room to meet with colleagues in Berlin and Athens, saving 3,000 pounds of CO2 emissions per person .

mUmBAI, INdIA

To complete her science assignment, a student logs into a virtual classroom, part of an online learn-ing knowledge center funded by a grant from HP designed to extend the reach of education .

Citizenship

see hp’s full global Citizenship report at www.hp.Com/go/report / 11

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three prinCiples of

hp’s responsible supply Chain management

advanCing women’s healthIn 2009, HP completed a pilot of the HERproject (or Health Enables Returns) at two suppliers in Mexico . HERproject joins companies, factories and local NGOs to promote female workers’ health through targeted workplace training programs .

The catalyst for HERproject was a study by the David and Lucile Packard Foundation, which found poor awareness of general and reproductive health, family planning options and available health services among women in global supply chains .

HERproject, which was launched by Business for Social Responsibility in 2007, complements HP’s approach to responsible supply chain management . Proactively improving the health of our supply chain workforce yields social and business benefits by reducing absenteeism while increasing productivity and retention . Building on the program’s success, HP has launched HERproject at three supplier sites in China .

In a global supply chain, local issues take on world-wide significance . Labor rights in China, for instance, or factory emissions in Mexico are linked to compa-nies bringing products to market—even if they are many steps removed .

This raises tough questions for HP, which has the larg-est IT supply chain . How far do our responsibilities extend? What issues can we meaningfully address? How do we minimize risks to customers and meet stakeholder expectations?

We take on these questions through our supply chain social and environmental responsibility (SER) program . It focuses on building supplier capabilities, promoting collaboration and increasing transparency .

1. BUIldING SUPPlIER CAPABIlITIES

HP partners with NGOs to correct issues found through risk assessments and supplier audits . Together, we train suppliers on best practices and tools for meeting HP’s rigorous code of conduct while helping them be more efficient .

For example, HP is working with Students and Scholars against Corporate Misbehavior to raise labor rights awareness at two supplier sites in China . The program—the first of its kind in the IT industry—is training about 4,500 workers on labor rights and has set up a hotline for reporting grievances .

2. PROmOTING COllABORATION

Our supply chain is not ours alone . Because HP shares suppliers with others, we collaborate on issues that transcend any single company .

In 2009 HP began working with the Electronic Industry Citizenship Coalition and IT companies to respond to human rights violations associated with the trade of minerals from The Democratic Republic of Congo (DRC) . These minerals are used to produce metals commonly found in electronics .

While the root issue is far removed from HP and dif-ficult to isolate—not all metals are sourced from the DRC, and there can be more than five tiers of suppliers from their source to our direct suppliers—it is unac-ceptable that raw materials from the DRC contributing to armed conflict might end up in HP products .

This is why HP is contributing to an industry effort to develop a certification process that will ensure conflict minerals from the DRC are not used to manufacture electronics .

3. INCREASING TRANSPARENCy

A cornerstone of our SER program is transparency . In 2008, HP was the first in our industry to publish its first-tier suppliers . We again broke new ground in 2009, when we reported emissions data for our largest suppliers .

We are taking these steps—along with reporting results of audits in our global citizenship reports—to drive improvements in the global IT supply chain and foster trust with stakeholders .

700+ Number of production suppliers in HP’s supply chain . 590 In 2009, HP conducted 104

supplier site audits, bringing our total since 2005 to 590 .

Number of workers at supplier facilities that produce HP products .300,000o

ver

12 / Changing the equation: the impaCt of hp global Citizenship in 2009—and beyond

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500+ lOw-RISk SUPPlIERS

fIRST-TIER SUPPlIERS

SECONd-TIER SUPPlIERS

153 SUPPlIERS AUdITEd THROUGH 2009

43 SUPPlIERS wIll BE REAUdITEd IN 2010

18 NEw SUPPlIERS TO BE AUdITEd IN 2010

THIRd-TIER SUPPlIERS

CO2e emissions associated with suppliers’ material and manufacturing, according to data collected from suppliers that represent 86% of HP’s expenditures in those areas . 4.1 m

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outside voiCes

prof. j. ruggieun speCial rep.

on business and human rights

Human rights are relatively new on the agenda of most

businesses . Yet their relevance to companies is compelling, as

criticism, campaigns and law-suits over alleged harm to human

rights increasingly pose risks to companies’ reputations, operations,

staff recruitment and retention, and their bottom line .

In 2008, the UN Human Rights Council unanimously welcomed the

“protect, respect and remedy” frame-work I put forward for better managing

the human rights challenges posed by, and faced by, companies . It comprises

the state duty to protect against human rights abuses by business, the corporate

responsibility to respect human rights, and greater access by victims to effective

remedy .

The corporate responsibility to respect requires a process of human rights due diligence: that

a company’s policies or other public commit-ments adequately incorporate human rights; that

it periodically assesses its human rights impacts; integrates the results and operational implica-

tions across its decision making; and tracks and reports on its performance . This process requires

leadership from the top and an alignment of staff incentives across the company . And it involves

engagement with those at risk of being impacted and avenues for them to raise concerns .

Only with such a process in place can a company know and show that it is respecting human rights . I am grati-

fied to see more and more companies now working to ensure they can meet this baseline expectation .

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The healthcare industry is grappling with daunting issues . Governments are mandating electronic medi-cal records . Patients have heightened expectations for better care . Markets are demanding stronger financial performance . Meeting these challenges requires more than incremental change . It calls for entirely new ways of thinking about, delivering, managing and tracking care and services .

HP believes technology is a prescription for change; it has the power to transform healthcare, making it more affordable, effective and innovative .

INCREASING AffORdABIlITy

Affordable healthcare hinges on creating efficiencies in how providers deliver services and insurers process claims . Technology can simplify infrastructure and tools, allocating more resources to care and fewer on overhead .

For example, when the state of Kansas needed to revamp its Medicaid Management Information System, it turned to HP . Our technology streamlined processes, enabling real-time exchange of information between providers and lowering administrative costs to less than 2 percent of benefits .

ImPROvING CARE

In the U .S ., up to 98,000 people die annually from medical errors .19 Technology can reduce that number by ensuring the best remedy is provided at the proper time, in the correct way, for the right person .

For example, HP handheld devices are allowing healthcare workers to access patient information and order medication and tests with greater speed and accuracy .

Another example is the London Health Sciences Centre in Ontario, Canada, which is using HP technol-ogy to track infusion pumps for administering fluids . This frees clinicians to spend more time with patients and less time searching for equipment .

dRIvING INNOvATION

Technology can be a catalyst for expanding medical knowledge and treatment .

HP envisions an integrated healthcare system where software and personalized services capture patient data, storing and securing it . Analyzing this informa-tion can reveal trends, such as emerging epidemics, and prompt more rapid and effective responses .

Centralized research will also enable the collective intelligence of the healthcare community to improve services . Expensive emergency room visits will be replaced with virtual consultations that focus on pre-ventative care . The integration of IT systems in hos-pitals and clinics will establish vital, more efficient connections between surgical theaters, smart beds, nursing stations and insurance billing systems .

This vision is not far off . Today the world-respected M .D . Anderson Cancer Center is using HP high- performance computing to cut the time to analyze massive data sets from 20 minutes to 20 seconds . Widening access to such technology is accelerating research and innovation, enabling drug companies to bring medicines to market more quickly, for example .

a new presCription for better Care

HP expanded HERproject (or Health Enables Returns) to three new supplier sites in China in 2009 . +3Percentage of HP employees who

rated workplace and job safety as meeting or exceeding expectations . 93% Number of healthcare

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Calls per year handled by HP technologies, from potential enrollees in the Arkansas BreastCare program, which gives uninsured women access to healthcare .111,000+Number of patient visits supported

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did you know?

HP is the worldwide leader in healthcare information technology, providing computing solutions to three out of four hospitals .

It’s estimated that e-health initia-tives will save the U .S . more than $80 billion a year .20

HP is the leading provider of Medicaid process management services, handling about 1 billion claims and administering approxi-mately $100 billion in benefits each year .

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tuning in to the planetImagine a world in which your house heats itself just before you return, a bridge notifies officials when steel tie rods must be replaced, and the next hybrid flu virus is tracked around the globe in real time .

All of this and more will be possible through the Central Nervous System for the Earth (CeNSE) . In development by HP Labs, CeNSE will use billions of nanoscale sensors to feel, taste, smell, see and hear what is going on in the world and then transmit that data over powerful networks to be analyzed and acted on quickly . Having such deep intelligence on demand will empower better, faster decisions, improving safety and security while promoting greater sustainability .

The digital universe is 500 billion gigabytes—equiva-lent to a stack of books stretching to Pluto and back ten times .21 But here’s the even bigger issue: just 25 percent of the world’s population is online .22

That figure will dramatically rise as the population races toward 8 billion and technology becomes ever cheaper and accessible . Ubiquitous Internet access, more mobile devices, the advance of cloud-based ser-vices and the digitalization of virtually every aspect of our lives—these and countless other factors will gener-ate enormous volumes of data .

The question is—how do we make sense of it all? Left unaddressed, this explosion of information risks overwhelming us . But while technology is fueling the challenge, it also holds the answer . With the right solutions, the information explosion represents an unprecedented opportunity for greater intelligence, deeper insight and smarter decisions . This is where HP is focusing our energies .

BRAIN (short for Behaviorally Robust Aggregation of Information in Networks) is a prime example . Developed by HP Labs, BRAIN uses proprietary

algorithms to tap into and apply the collective wis-dom of experts to make accurate predictions about future events, such as quarterly revenues or demand for products . The tool removes bias and generates more on-target forecasts . An HP business unit relies on BRAIN, as does SwissCom, Switzerland’s leading telecom provider, to predict revenue with greater effi-ciency and accuracy .

Unstructured information represents another oppor-tunity . Roughly 80 percent of data stored by orga-nizations falls into this category .23 It’s all the raw information—e-mails, audio and video files, HTML-based web pages—not organized in a database, making it very difficult to search and analyze .

HP Labs is working on a solution called Live Business Intelligence (Live BI), a unified data and analytics platform . By allowing much more powerful and sophis-ticated analysis of highly complex data, Live BI will yield insights for transforming operational processes and customer interactions .

harnessing the

information explosion

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1/25 HP is one of 25 companies involved in the Business Forum for Consumer Privacy .

In 2009, more than 97% of HP employees completed Standards of Business Conduct training .97%

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2010

2011

proteCtingprivaCy in a ConneCted world

Privacy is a fundamental human right increasingly at risk . Today, one-third of digital information includes personal information; that’s forecast to rise to 45 per-cent by 2012 .24 As a result, HP is as focused on devel-oping solutions to making the most of data as it is on keeping data safe and secure .

Beyond integrating an array of security and privacy features into our products and services, HP is a found-ing member of The Trusted Computing Group, which develops and promotes security standards for PCs, servers, PDAs and digital phones .

But technology can go only so far—it must be supported by policies that guide informed decisions when handling data .

HP’s privacy accountability model is a case in point . It is based on traditional criteria, such as the law, codes of conduct, contracts and programs such as Safe Harbor . But our model goes further by also considering company values, customer expectations and potential risks to our business and that of our stakeholders .

We developed our accountability model in collabo-ration with the Centre for Information Policy Leadership, and are working with that organization, regulators and advocacy organizations to encourage its wider adoption .

2009 In 2009, HP was named one of the World’s Most Ethical Companies by the Ethisphere Institute .

HP scientists and engineers are working with 11 other companies on PICOS, a program to create confidence in the safety of sharing data in online communities .11

The digital universe is so vast that it now exceeds available storage space . According to an IDC white paper, information surpassed stor-age capacity in 2007 . By 2011, almost half of all digital information will be transient, or without a permanent location .21

Digital information

Available storage capacity

45%Today, one-third of digital information includes personal information; that’s forecast to rise to 45 percent by 2012 .24

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new lessons for a ConneCted world

Education goes hand in hand with economic devel-opment . The prosperity of communities and nations depends on having individuals with the talent and skills to participate and compete in the knowledge economy . A highly educated workforce has the power to drive innovation, raise productivity and stimulate growth .

At HP, we believe we can fuel learning and economic development by applying technology to broaden edu-cation’s reach and transform its impact .

first, by making education more relevant to more people. The common model for education hasn’t kept pace with the skills needed to succeed in today’s information-intensive economy . Today’s stu-dents need the skills to use technology to find, syn-thesize and apply information efficiently . To meet this requirement, classrooms need to be as wired as the world around us .

Making technology an integral part of the educational experience helps students master the Internet as well as other core competencies, such as critical thinking and collaboration . It’s also a way of bridging the edu-cational divide for underserved communities . And for students with learning differences, technology can be used to tailor the curriculum to their individual needs .

Second, by making education more engag-ing. Building websites, writing blogs, creating digital video—many students are already doing these things on their own . Joining learning with the activities stu-dents are naturally drawn to gives students a way to more deeply connect to academic concepts . Students can use multimedia to visualize complex problems, and use Internet resources to access research or online chat programs to collaborate with their classmates . It’s a simple equation: When students are more engaged, they learn more .

Third, by opening education up to everyone. Approximately 80 percent of the world’s population lives in developing countries,25 where schools can be few and far between . Technology is a potent force of democratization, capable of freeing education from traditional settings and opening it up to more people in more places . Tools such as desktop videoconfer-encing can bring the classroom to individuals in rural areas, and grid computing can connect academics in remote regions to their colleagues around the world .

Read the case studies to the right to learn more about what HP is doing to change the education equation .

500,000 HP will work with partner organizations to train a half-million students globally through HP entrepreneurship training programs by the end of 2010 .m

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By 2011, HP plans to connect 100 universities via grid technology through the UNESCO Brain Gain Initiative .100 Number of Innovations in Education

grant projects launched worldwide by HP in 2009 .153

MAKING THE WORLD A CLASSROOMDynamic, interactive technology-based learning can better prepare students with the skills they need to succeed outside school walls . As a result of an HP Innovations in Education grant, students at the Universidad EAFIT, located in Medellín, Colombia, can now use mobile technologies such as HP tablet PCs and iPAQs to take the classroom wherever they go . They employ blogs, e-mail and instant messaging to collaborate with each another, communicate with their professors and share insights .

USING THE POWER OF TOUCHTechnology can help students learn in a way that works best for their unique needs . At the Hope Technology School, teachers are using HP TouchSmart PCs to connect with students who have learning differences . By using HP TouchSmart Voice Notes, students record their voices and play the files back with a simple touch to the screen . This method is particularly helpful with students who have difficulty speaking, as it reinforces language skills and motivates them to speak more . Students also use their voice notes to commu-nicate with classmates and teachers .

LAUNCHING NEW ENTREPRENEURSTechnology can bring skills-based training to those outside of the educa-tional system, such as young entrepreneurs . In partnership with the Micro-Enterprise Acceleration Institute and the United Nations Industrial Development Organization, HP supports the Graduate Entrepreneurship Training through IT (GET-IT) program to help 16- to 25-year-olds begin careers and launch new busi-nesses . Aspiring entrepreneurs can enroll at one of 100 GET-IT centers in Africa, Europe and the Middle East . Others can access training courses through an online portal, www .get-it-city .net .

STEMMING THE TIDE OF BRAIN DRAINAn estimated 70,000 skilled professionals, scientists, academics and research-ers leave Africa each year to work in developed countries .26 A collaboration between HP and UNESCO is turning this “brain drain” into a “brain gain” by allowing university faculty to engage in real-time scientific collaboration from their home countries through grid and cloud computing . Since the pilot project launched in 2006, the program has connected 20 higher education institutions throughout the Middle East and Africa .

Cheikh Anta Diop University in Senegal is using its access to the European Grid (EGEE) infrastructure to tap into computing power and storage capacity . Now, its scholars can collaborate with colleagues around the world and engage in cutting- edge university projects worldwide without having to leave their home countries .

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doing the right thingHp And world wildliFe FUnd-CAnAdASince 2008, HP has been a member of the World Wildlife Fund’s Climate Savers program, a group of leading companies that aspire to reduce the effect their businesses have on the planet, and ultimately pursue industry transformation . The actions they have taken prove that environmental responsibility is not only good for the planet but can also enable companies to grow profits while conducting business in a sustainable manner .

As part of this commitment and recognizing the lead-ership role HP can play, HP Canada worked in part-nership with World Wildlife Fund-Canada to produce “Rethink Business: How Addressing Climate Change Can Improve The Bottom Line”, a report highlighting the successes, challenges, and key learnings of WWF Climate Savers companies . HP Canada provided fund-ing and also shared exhaustive information and meth-odologies on the industry-leading actions and solutions it has taken to promote sustainability throughout the organization . The report provides details on how HP has focused on the innovation of environmentally sound product design and performance, improving the energy efficiency of its solutions, and extending product reuse and recycling programs to its customers .

WWF-Canada is sharing the case studies and key learnings of HP and other Climate Savers with Canadian businesses and government organizations in a campaign to demonstrate that it is possible to reduce CO2 emissions while creating competitive advantage, and increasing profitability and shareholder value .

GlobAl Forest & trAde networkCanada is home to ten percent of the world’s remain-ing forests - an important part of our national heritage . Recognizing the leading role HP can play in helping to protect these and other forests, HP joined the Global Forest & Trade Network in North America (GFTN-NA) in 2009 . This is a World Wildlife Fund (WWF) initia-tive linking more than 300 companies globally that share a commitment to responsible forestry .

HP’s existing goals around paper and our paper policy complement this membership: HP has committed to pro-gressively increase the amount of responsibly harvested fibre used in its paper products that are sold globally . HP has set a target of 40 percent of its paper sales to be sourced from Forest Stewardship Council-certified or post-consumer recycled sources by the end of 2011 .

wAste redUCtion weekA champion-level sponsor, 2009 marked the seventh consecutive year that HP Canada has supported Waste

Reduction Week (WRW) . Organized by recycling councils across Canada, WRW informs Canadians about the environmental ramifications of wasteful prac-tices and encourages environmentally conscious deci-sion-making throughout the year .

HP Canada participated wholeheartedly in a launch event with other events being run across the country by the recycling councils, aimed at encouraging both employees and customers to reduce, reuse and recycle responsibly . HP Canada also provided financial sup-port and guidance to WRW, working hard to help WRW’s executive council come up with new ways to spread their message .

HP is also actively engaged with retailers and provin-cial governments to implement provincial end-of-life electronics programs that have collectively diverted over 100,000 tonnes of waste electronics from Canadian landfills .

environmentAl edUCAtionHP Canada’s commitment to environmental educa-tion is deep and far reaching . In addition to the cre-ation of a chair in Corporate Social Responsibility, it also awarded more than $600,000 worth of grants to schools across Canada; enabled ongoing coop oppor-tunities for work placements in the environmental field; and provided a wide range of environmental education programs for corporate partners .

employee enGAGementFirst introduced in 2008, the Green Advocates Program is designed to educate and empower employ-ees to become ambassadors of the company’s many environmental initiatives . By completing a variety of training programs throughout the year, employees learn how HP responds to environmental challenges by delivering groundbreaking solutions that help the company and its customers minimize environmen-tal impacts, increase productivity and save money . They’re also educated on topics such as environmen-tal management systems, energy efficiency and cli-mate change, eco-labels and the concept of carbon footprints .

Armed with this knowledge, Green Advocates become strategic sales enablers, able to provide accurate, timely and customer-centric environmental information to sales and marketing staff, and where appropriate, to customers .

Since its launch, the Green Advocates program has quickly grown to nearly 200 employees now partici-pating . This unique program has since been adopted worldwide due to its success and is recognized by HP as a global best practice .

100 HP ensures that 100 percent of HP’s consumer photo paper was derived from sustainable forest certified suppli-ers in 2009

In 2009, seven HP teams raised over $7,000 for the 19th annual Canada Life CN Tower Climb for WWF-Canada $7,000 pe

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Contributing to our Communities

In 2009, HP Canada’s “Innovations in Education” program awarded HP technology, cash and services valued at over $600,000 to schools in Canada$600 Number of HP Canada employees who

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THE RCMPMore than 700 at risk youth in two remote Canadian communities now have access to leading-edge technology thanks to a 2009 grant made by HP Canada to the RCMP Foundation . “Strengthening Remote Communities Through Technology” is a pilot project benefiting The Husky Centre Stadium and The Town Community Hall in Nain, Labrador, and The Battleford’s Boys and Girls Club in North Battleford, Saskatchewan .

In addition to enabling the youth in these remote communities to learn about com-puter usage, the donation allow enables them to use the Rosetta Stone program to maintain their Inuktittut language, and become proficient with basic Internet programs and more aware of the outside world through the internet . As most of the youth in Nain will not travel very far in their lifetimes, this access gives them a powerful opportunity to learn about other cultures, lifestyles and opportunities .

“This grant is a great beginning in our effort to divert youth toward positive activi-ties and away from the negative choices of alcoholism, drugs, violence and drop-ping out of school,” said Fred Semerjian, President & CEO – RCMP Foundation .

ABORIGINAL LITERACY PROGRAMTwo “fly-in” First Nations communities will receive HP equipment as part of an initial pilot to increase the literacy and technology skills of local youth . The objectives of the program are to provide the tools and to measure the impacts of computer literacy, artistic and academic use of technology .

INNOVATIONS IN EDUCATIONAt HP, we believe we can fuel learning and economic development by apply-ing technology to broaden education’s reach and transform its impact . We have a long tradition of supporting educational institutions that are using tech-nology to transform teaching and learning . In 2009 HP Canada’s “Innovations in Education” grant program awarded HP technology, cash, and professional services valued at a total of more than $600,000 to eight schools across the country .

Technologies such as wireless HP Tablet PCs, mini-notebooks and digital projec-tors will be used in innovative ways to fundamentally redesign the student learn-ing experience . These grants help educators transform student achievement, while encouraging student interest in careers in technology, engineering, math and sci-ence, including environmental science .

JUNIOR ACHIEVEMENTEach year HP Canada coordinates a national program to support Jr . Achievement, an international non-profit organization that delivers inspiring and motivational programs to students in grade eight taught by trained volunteers from the business community .

In 2009, more than 1,025 grade eight students gained insight into how the choices they make today could impact their lives in the future, when more than 80 HP Canada employees delivered Jr . Achievement’s “Economics of Staying in School” (ESIS) program to schools in Ontario and Quebec . In addition to the vol-unteer component of ESIS, HP Canada also contributed funding .

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ENdNOTES1 “The Expanding Digital Universe: A Forecast of Worldwide Information Growth Through 2010,” IDC white paper

sponsored by IDC, March 2007 .2 Internet World Stats, as of September 2009 .3 “The New Global Middle Class: Potentially Profitable—but Also Unpredictable,” Knowledge@Wharton, July

2008, citing the World Bank . 4 “World Needs to Axe Greenhouse Gases by 80 pct: Report,” Reuters, April 19, 2007, citing the Center for

International Climate and Environmental Research . 5 “The Price of Excess: Identifying Waste in Healthcare Spending,” PricewaterhouseCoopers, March 2009 . 6 “Extrapolating Evidence of Health Information Technology Savings and Costs,” RAND Corporation, 2005 . 7 “Out of School Adolescents,” United Nations Educational, Scientific and Cultural Organization, March 26, 2010 . 8 “Inequality Undermining Education Opportunities for Millions of Children,” United Nations Educational, Scientific

and Cultural Organization, November 25, 2009 . 9 “Brain Drain and Capacity Building in Africa,” The International Development Research Centre, 2005, citing the

International Organization for Migration .10 “International Energy Outlook 2009,” U .S . Energy Information Administration . 11 “IT Directors Cite Energy Savings as No . 6 Data Center Concern,” environmental leader, citing a Symantec

report, January 20, 2010 . 12 “EPA Report to Congress on Server and Data Center Energy Efficiency,” August 2007 . 13 “The New Reality of Balance and Optimization in Planning Green Data Centers,” William Kosik, HP white paper,

August 2008 . 14 “Service-Based Approaches to Improving Data Center Thermal and Power Efficiencies,” IDC white paper spon-

sored by HP, May 2007 . 15 “Data Center Efficiency and Productivity,” Uptime Institute white paper, 2006 .16 “EPA Report to Congress on Server and Data Center Energy Efficiency,” August 2007 . 17 “Revolutionizing Data Center Energy Efficiency,” McKinsey & Company, July 2008 .18 “Hidden Assets,” Photizo Group white paper, 2008 . www .docusense .com/Photizogroup .pdf19 U .S . Department of Health and Human Services, citing “To Err is Human: Building a Safer Health System,” Institute

of Medicine report, November 1999 . 20 financial times: health, May 2009, citing RAND Corporation . 21 “As the Economy Contracts, the Digital Universe Expands,” IDC white paper, sponsored by EMC, May 2009 . 22 Internet World Stats, as of September 2009 .23 “The Business Issues of Not Managing Content,” Susan Clarke, The Butler Group, November 2009 .24 “As the Economy Contracts, the Digital Universe Expands,” IDC white paper, sponsored by EMC, May 2009 .25 2008 World Population Bulletin, Population Reference Bureau . 26 “AFRICA: New Project to Alleviate Brain Drain,” Clemence Manyukwe, university world news, Africa edition,

June 22, 2008 .

© 2010 Hewlett-Packard Development Company, L .P . The information contained herein is subject to change without notice . The only warranties for HP products and services are set forth in the express warranty statements accompa-nying such products and services . Nothing herein should be construed as constituting an additional warranty . HP shall not be liable for technical or editorial errors or omissions contained herein .

May 2010

to learn more, visit www.hp.Com/go/globalCitizenship