Conflict minerals

Of the 3TG facilities reported to Hewlett Packard Enterprise in 2016, 90% are Conflict-Free Smelter Program compliant, in process to become compliant, and/or are reasonably believed to provide only conflict minerals from recycled or scrap sources or to source conflict minerals from outside the Covered Countries.

 

The exploitation of natural resources in the Democratic Republic of Congo (DRC) to fund groups engaged in extreme violence and human rights atrocities has resulted in international concern and calls for action. Behavior of particular concern has been linked to the extraction of natural resources that are mineral precursors of the metals tantalum, tin, tungsten, and gold (3TG) - known as “conflict minerals.”

3TG metals are found in relatively small amounts in virtually all Hewlett Packard Enterprise electronic products. The possibility that the manufacture of our products might be connected to the funding of armed conflict is unacceptable to us. We continue to work toward ensuring 3TG used in our supply chain is not associated with conflict in the DRC.

Hewlett Packard Enterprise's Conflict Minerals Report for calendar year 2016 includes a list of smelters reported to us regardless of whether or not they source from the DRC and adjoining countries. This report continues our policy of supply chain transparency, highlights the smelters that are validated as compliant with the CFSP or are working to become CFSP compliant and we use the information on smelters that have unknown 3TG sourcing to encourage directly or through our supply chain for those smelters to become CFSP compliant.

Eliminating risk associated with conflict from our supply chain

We are taking steps to identify and advance the use of DRC conflict free1 minerals in our supply chain. We require each of our suppliers to begin transitioning all of their tantalum, tin, tungsten, and gold supply chains to Conflict-Free Smelters or encouraging their current smelters to participate in the Conflict-Free Smelter Program through direct engagement. Consistent with our disclosure for calendar year 2015, all tantalum smelters reported to be in the supply chain were compliant with the Conflict-Free Smelter Program in 2016.

Hewlett Packard Enterprise Progress in 2016

In 2016, Hewlett Packard Enterprise obtained sourcing information from 3TG production suppliers estimated to represent more than 98% of its 3TG production procurement spend and 84% of smelters reported by Hewlett Packard Enterprise’s supply chain are CFSP compliant or in process to become compliant.

Status of 3TG smelters or refiners reported in Hewlett Packard Enterprise's supply chain

Total

Progress toward DRC Conflict Free

Percentage

Tantalum

44

44

100%

 

Tin

80

74

93%

Tungsten

46

43

93%

Gold

135

114

84%

Total

305

275

90%

  • Compliant refers to 3TG facilities that are listed by CFSI as (a) compliant with Conflict-Free Smelter Program protocols or (b) certified or accredited by a similar independent assessment program such as the Responsible Jewellery Council’s (RJC) Chain-of-Custody Certification Program, or the London Bullion Market Association’s (LBMA) Responsible Gold Programme.
  • In Process refers to 3TG facilities that are listed by CFSI as currently in the process of becoming Conflict-Free Smelter Program compliant.

 

 

Multi-stakeholder collaboration

Solving the problem of conflict minerals requires global collaboration. Since 2008, Hewlett Packard has worked with other businesses, nongovernmental organizations and government agencies to establish viable sources of conflict free minerals in the DRC and neighboring countries.

Hewlett-Packard Company was instrumental in establishing the CFSI, and as Hewlett Packard Enterprise we continue to be an active, engaged and contributing member (CFSI member ID: HPE), as well as participating in steering CFSI through our EICC Board of Directors seat. Additionally, we engage with Kemet Partnership for Social and Economic Sustainability, Responsible Sourcing Network’s Multi-Stakeholder Group, and the Solutions for Hope project

1.  "DRC conflict free" as defined in the U.S. Securities and Exchange Commission’s conflict minerals rule to mean products that do not contain conflict minerals that directly or indirectly finance or benefit armed groups in the DRC or an adjoining country.