Sustainability Now a Condition for Market Access, Says HP Executive

Tech sector confirms sustainability now controls supplier selection

A senior HP executive has confirmed what many UK businesses are already experiencing. Getting into supply chains now depends on your environmental performance, not just your price or quality.

Kim Hye-sun leads government affairs and sustainability compliance for HP in Korea and Japan. Speaking at the H.eco Tech Festa 2026 event, she stated that sustainability has become a fundamental condition for market access. Consequently, businesses that cannot demonstrate credible environmental credentials are being excluded from major contracts.

This matters because HP is not alone in making these demands. Large corporations across manufacturing, technology, and retail sectors are imposing similar requirements on their suppliers. Furthermore, these expectations are backed by regulatory pressure that makes them commercially unavoidable.

Why major corporations are requiring supplier emissions data

HP has committed to reducing value chain greenhouse gas emissions by 50% by 2030, measured against a 2019 baseline. The company aims to reach net zero emissions by 2040. However, most of HP’s carbon footprint sits outside its direct operations.

In 2021, HP achieved a 9% reduction in its overall carbon footprint compared to 2019. The company reported a 59% reduction across Scope 1, 2, and 3 emissions during the same period. Notably, Scope 3 emissions include all indirect emissions from the value chain, including purchased goods and services.

This creates a commercial reality for suppliers. When a major buyer like HP commits to halving value chain emissions, it must collect data from thousands of suppliers. Moreover, it must work with those suppliers to reduce their emissions or find alternatives that can meet the requirements.

HP also reached 75% circularity for products and packaging, meeting its 2030 target early. The company has set a goal to recycle 1.2 million tonnes of hardware and supplies by 2025, measured from a 2016 baseline. Additionally, HP aims to achieve 100% renewable electricity in global operations by 2035, having already reached this milestone in US operations as of 2024.

How procurement requirements are changing for UK suppliers

Several developments are forcing businesses to treat sustainability as a market access issue rather than a voluntary initiative. The combination of regulatory requirements and buyer demands means suppliers face exclusion if they cannot provide environmental data.

EU carbon border adjustment mechanisms will impose costs on imports based on embedded emissions. This affects UK exporters to European markets. Meanwhile, UK public sector buyers must comply with Procurement Policy Note 06/21, which requires carbon reduction plans from suppliers bidding on contracts above £5 million annually.

Private sector procurement is moving in the same direction. Technology companies, manufacturers, and retailers are asking suppliers to report Scope 1, 2, and 3 emissions. In addition, they are setting reduction targets that suppliers must meet to retain contracts.

HP reduced water usage by 8% to 146.8 million cubic meters in 2021. The company targets a 15% reduction by 2025 through water-efficient manufacturing processes, including recycled rainwater cooling towers. Similarly, HP aims to reduce product energy consumption by 30% by 2025 and source all HP-brand paper and packaging sustainably by 2030.

These targets affect suppliers throughout the value chain. For example, component manufacturers must demonstrate energy efficiency improvements. Packaging suppliers need to prove sustainable sourcing. Logistics providers face questions about transport emissions.

What this means for small and medium businesses

UK SMEs supply larger corporations that are under pressure to report and reduce value chain emissions. Therefore, smaller businesses must now provide emissions data or risk losing access to major customers. This represents a significant shift in how supplier relationships work.

Previously, sustainability requirements were often handled through questionnaires that many suppliers completed without verification. However, buyers are now requesting detailed carbon footprint data, evidence of measurement methodologies, and credible reduction plans. Furthermore, they are linking contract renewals to demonstrated progress.

HP publishes annual Sustainable Impact Reports that detail progress across environmental and social commitments. The 2024 report includes information on programs like HP All-In Plan, which helps customers reduce carbon, energy, and paper waste. Consequently, HP can demonstrate its own progress while requiring similar accountability from suppliers.

For SMEs, this creates several practical challenges. Many lack the internal expertise to measure emissions accurately. Additionally, they may not have systems to collect energy, fuel, and material usage data. Some businesses have never calculated their carbon footprint and do not know where to start.

The requirements are becoming more specific. Buyers want to know Scope 1 emissions from direct operations, Scope 2 emissions from purchased energy, and increasingly Scope 3 emissions from the supply chain. Moreover, they expect data to follow recognized calculation methodologies such as the Greenhouse Gas Protocol.

Carbon reporting requirements UK businesses must address

Understanding what buyers actually need helps businesses respond effectively. The following points represent the core requirements appearing in supply chain sustainability assessments.

• Annual greenhouse gas emissions data covering Scope 1 and 2 as a minimum, with Scope 3 increasingly requested for specific categories relevant to the buyer relationship.
• Evidence of the calculation methodology used, typically referencing the Greenhouse Gas Protocol or ISO 14064 standards to ensure consistency and comparability.
• A carbon reduction plan with specific targets and timelines, showing how the business intends to reduce emissions over the next three to five years.
• Information on energy sources and any transition to renewable electricity, including percentages of renewable energy used in operations.
• Data on resource efficiency measures such as water usage, waste generation, and recycling rates where relevant to the product or service supplied.
• Details of any environmental management systems, certifications, or third-party verification of reported data.

Starting carbon measurement without expensive consultancy

Many SMEs believe carbon reporting requires expensive consultants or complex software. However, businesses can start with straightforward steps that build foundational data. The key is to begin with what you can measure now and improve accuracy over time.

Start by gathering energy bills for electricity and gas used in your operations. Most utility bills show consumption in kilowatt hours for electricity and cubic meters or kilowatt hours for gas. Therefore, you already have the primary data needed for Scope 2 emissions from electricity and part of Scope 1 from gas combustion.

Next, collect fuel receipts if your business operates vehicles. Fuel consumption directly creates Scope 1 emissions. Similarly, if you use refrigerants in air conditioning or refrigeration, any top-ups represent Scope 1 emissions from fugitive gases.

Converting this data to carbon dioxide equivalent requires emission factors published annually by the UK government. The Department for Energy Security and Net Zero provides these factors free of charge. Consequently, businesses can calculate emissions without purchasing specialized software initially.

HP’s approach demonstrates how companies integrate sustainability across operations. The business supports UN Sustainable Development Goals and has partnered with WWF to manage nearly one million acres of forest by 2030. In addition, HP runs supplier diversity initiatives and programs like HP Learning Initiative for Entrepreneurs for underserved communities.

However, SMEs do not need to replicate corporate-scale programs. Instead, focus on accurate measurement of your own operations and credible plans to reduce emissions. This provides the data buyers need while identifying cost savings from energy efficiency.

Once you have baseline data, identify reduction opportunities. Often these align with cost reduction. For example, switching to LED lighting cuts electricity consumption and emissions while lowering energy bills. Similarly, improving insulation reduces heating requirements, cutting both gas consumption and costs.

Document your methodology and keep records of calculations. Buyers increasingly ask for evidence of how emissions were calculated. Moreover, you will need historical data to demonstrate year-on-year progress. Therefore, establishing a simple system now makes future reporting significantly easier.

Public sector contracts and PPN 06/21 requirements

UK businesses supplying the public sector face specific carbon reporting obligations under Procurement Policy Note 06/21. This policy requires suppliers bidding on central government contracts above £5 million annually to publish a carbon reduction plan.

The carbon reduction plan must cover Scope 1 and 2 emissions as a minimum. Additionally, it should address Scope 3 emissions where relevant to the contract. The plan needs baseline emissions data, reduction targets aligned with net zero by 2050, and specific actions the business will take.

Importantly, the requirement applies to the supplier’s entire organization, not just the portion relevant to the government contract. Therefore, a small business with £6 million in annual government contracts must report on all its emissions, even if most revenue comes from private sector work.

This creates a practical threshold. Businesses approaching or exceeding £5 million in public sector contracts should prioritize carbon reporting immediately. Furthermore, lower-tier suppliers to main contractors may face similar requirements cascaded down the supply chain.

Meeting PPN 06/21 requirements without proper preparation can prevent bid submissions. Contracting authorities can exclude suppliers that fail to provide compliant carbon reduction plans. Consequently, this becomes a market access issue identical to what HP’s executive described for private sector supply chains.

How sustainability affects tender scoring and supplier selection

Beyond mandatory requirements, sustainability performance increasingly influences competitive scoring in tenders. Buyers allocate points for environmental credentials, energy efficiency, and circular economy approaches. Therefore, stronger sustainability performance can win contracts even when pricing is similar.

HP achieved its 75% circularity target for products and packaging ahead of schedule. The company designs products following a principle of reducing what is possible, reusing what cannot be eliminated, and recycling what remains. This approach influences supplier selection because HP needs partners who can support circular business models.

For UK businesses, this means thinking beyond compliance. Companies that can demonstrate genuine resource efficiency, design for longevity, or take-back schemes for products gain competitive advantages. Moreover, these approaches often reduce material costs and create new revenue streams from refurbishment or recycling.

Tender responses now commonly include sections on environmental management, carbon footprint, and sustainability initiatives. Scoring matrices assign 10% to 20% of total points to these factors. In close competitions, sustainability performance determines the winning bid.

Where to find authoritative guidance and support

Several government and industry resources provide detailed guidance on carbon reporting and sustainability requirements. These sources offer methodologies, emission factors, and practical tools without commercial bias.

The UK government greenhouse gas conversion factors published by the Department for Energy Security and Net Zero provide the emission factors needed for carbon calculations. Updated annually, these factors cover electricity, fuels, transport, and other emission sources.

The Procurement Policy Note 06/21 guidance explains carbon reduction plan requirements for public sector suppliers. It includes templates and examples of compliant plans.

For businesses new to environmental management, the government guidance on measuring and reporting environmental impacts provides an accessible starting point. It covers basic measurement approaches and reporting frameworks.

Trade associations in your sector may offer industry-specific guidance. For example, manufacturing trade bodies often provide carbon reporting templates tailored to common processes in their industries. Similarly, sector-specific sustainability standards may apply to your products or services.

Businesses requiring support with carbon reporting, reduction planning, or PPN 06/21 compliance can access structured compliance support that addresses both measurement and strategic planning requirements.