Upstream impacts

		"Our sourcing criteria, partner selection, and community outreach programs, are testament to our commitment to environment and social responsibility. These values span our sourcing, procurement and business operations." Anita Manwani, Vice President and General Manager of Global Sourcing

Supplier Environmental and Social Responsibility Management Program
Agilent's relationships with suppliers are of strategic importance. We inform our suppliers, partners and contractors of our environmental expectations, encouraging them to adopt sound environmental management practices.

We communicate three environmental expectations to our suppliers, namely that they should:

• Conform with applicable EHS laws and regulations, and basic international principles relating to labor standards and environmental protection.

• Comply with international restrictions regarding the material content of Agilent products. We require our direct material suppliers to restrict the use of certain substances in our components and parts.

• Adopt sound EHS management practices. Agilent has specific criteria for our strategic suppliers' EHSMS and compliance with material restrictions. We work with suppliers who do not meet our criteria to help them improve in identified areas, and strategic onsite contractors in the United States are asked about their contributions to Agilent's EHSMS and compliance with laws and regulations.

In 2003, Agilent implemented a new process to assess environmental and social responsibility risk related to Agilent's direct material suppliers. We screen our suppliers with respect to chemical- or labor-intensive operations, quarterly spend and country of operation. This process enables us to conduct in-depth evaluations on a subset of suppliers and work on corrective action plans with those representing the highest potential risk.

Supplier Diversity Program
"Supplier diversity is no longer an issue of social conscience, it is a fundamental business strategy. The success of the organization and economy depends on enabling all businesses to share in economic growth. Through Supplier Diversity Business Development, Agilent enlarges our pool for good ideas and high-quality goods and services."
Darlene L. Jenkins, Director, Supplier Diversity and Sales Support Program

Agilent continues to meet key customer requirements by proactively sourcing products and services from Minority, Women, Disabled Veteran-owned Business Enterprises (MWDVBEs). As businesses continue to respond to changing demographics, Agilent's policy of sourcing and selling products through MWDVBEs is a corporate objective.

During 2003, Agilent's Supplier Diversity Program maintained supplier outreach strategies and supplier development objectives. Challenged with a difficult economic year, Agilent sourced 6.1% from MWDVBEs in 2003. In 2004 fiscal year, Agilent will continue to emphasize and expand supplier diversity strategies throughout the company.

Downstream impacts
Agilent has a number of downstream impacts, which we monitor and manage through our EHSMS. These impacts relate directly to our operations and products, and include areas such as waste, air emissions, wastewater discharges, product disposal and electronic scrap. To learn more about our downstream impacts, visit the 'Performance' section of this report.