Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recycled 12,604 tons of wastewater
• Reduced hazardous waste generation by implementing a nitrogen scheme in wave soldering and replacing stain remover with electronic fluorinated cleaning solution
• Reduced energy consumption of products launched in 2018 by 66% compared to 2010
• 39% of materials in monitors and 20% of materials in TVs are recycled materials

Social Achievements

• Launched Employee Assistance Program (EAP) in China and Taiwan
• Organized various social activities to foster team building and create a harmonious working environment
• Provided 66,208 hours of training for management staff and 634,845 hours for employees in China
• Supported the “One to One Subsidization” project providing education for ethnic minority students

Governance Achievements

• Established an enterprise risk management (ERM) system
• Implemented anti-corruption principles communicated to employees through handbooks and training
• Established a robust framework for the disclosure of inside information

Climate Goals & Targets

Environmental Challenges

• Slow demand and stiff market competition in China
• Adverse impact of the collapse of some emerging market currencies on local operating performances
• Infiltration issue in the old water system of Brazil site

Mitigation Strategies

• Strategic adjustment to product mix, drop in the cost of key components, and savings on warranty costs
• Strengthened operating structure
• Fixed infiltration issue in Brazil site with new water-usage efficiency facilities and hydrometers

Supply Chain Management

Supplier Audits: regular evaluations and ad-hoc audits

Responsible Procurement

• New suppliers undergo rigorous evaluation considering sustainability performance; key suppliers sign agreements committing to environmental and social responsibility

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix 27 to the Main Board Listing Rules

Certifications: ISO 9001, QC080000, GB/T 19001, OHSAS 18001, ISO 14001

Sustainable Products & Innovation

• Products designed with environmental-friendly materials, energy saving design, and easy-dismantle and collection principles

Awards & Recognition

• iF Awards, Red Dot Awards, Computex d&I Awards

Environmental Metrics

ESG Focus Areas

• Innovation
• Health & Safety
• Sustainability Supply Chain
• Ethics & Compliance
• Collaboration with Partners

Environmental Achievements

• Implemented emission reduction target for all PRC factories, aiming for a 4% reduction in Scope 1 and 2 GHG emissions by 2022 (based on 2018 levels).
• Replaced traditional lighting with LED panel lights in China and Taiwan.
• Downsized company vehicle fleet in Brazil to reduce emissions.
• Installed fume purifiers and used specialized fluids in Xiamen to reduce waste gas emissions.
• Committed to setting Science Based Targets aligned with the Paris Agreement.

Social Achievements

• Collaborated with universities to develop talent pipelines and provide training programs benefiting 544 students.
• Established the Employee Assistance Program (EAP) in China and Taiwan to support employee well-being.
• Increased training budget in Europe for Project Management, Personal & Team Development, and Excel training.
• Implemented management systems in accordance with ISO 45001 and SA 8000 for health and safety.
• Partnered with Pact to improve safety and productivity in artisanal mining in the DRC.

Governance Achievements

• Established an ESG Steering Committee to oversee environmental, social, and governance matters.
• Implemented a robust enterprise risk management (ERM) system.
• Maintained zero confirmed incidents or legal actions related to corruption.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions in 2020 due to increased production.
• Safety incident in one of the factories due to non-compliance with safety practices.

Mitigation Strategies

• Improved energy efficiency to better manage energy consumption.
• Disciplined responsible personnel and strengthened training on safety protocols.

Supply Chain Management

Supplier Audits: Annual Quality System Audits (QSA) for all suppliers; ad-hoc audits for key suppliers.

Responsible Procurement

• CSR Code of Conduct; social responsibility agreement; rigorous evaluation process considering sustainability performance; RBA Code of Conduct; conflict-free minerals policies; anti-child and forced labor policies.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards — Core option, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001, QC080000, GB/T19001, ISO 45001 (100% of operational facilities), SA 8000 (50% of operational facilities), ISO 14001 (62.5% of operational facilities), ISO 50001 (Amsterdam office)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)

Supporting local schools; providing training and development opportunities; promoting ethical employment practices; reducing environmental footprint; using recycled materials; managing waste responsibly; community involvement.

Sustainable Products & Innovation

• Monitors with LED backlight technology and power-saving features; products with easy dismantling design; products using recycled materials.

Awards & Recognition

• iF Product Design Award; Red Dot Design Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Energy Saving
• Green Technology Innovation
• Social Responsibility
• Digital Transformation
• Intelligent Innovation
• Green Manufacturing
• Green Supply Chain

Environmental Achievements

• Listed in the "ESG Pioneer 50 Index" by SASAC (State-owned Assets Supervision and Administration Commission of the State Council)
• Achieved "National Green Factory" certification
• Selected as one of Dell's three best CSR practice suppliers for its "Green Factory" practices.

Social Achievements

• Launched employee well-being programs (e.g., 'Advanced Officer Class' talent cultivation program)
• Donated防疫门廊机 (anti-epidemic corridor machine) to Taipei Nursing and Health University
• Collaborated with National Taiwan University Hospital, Hsinchu Branch on smart medical solutions
• Supported Xi'an High-tech Zone's aid-to-Tibet activities by donating TVs
• Provided rapid support to Xiamen's COVID-19 response by supplying 10,000 TVs

Governance Achievements

• Improved ESG governance, creating social value, and risk management, leading to a four-star rating in the "ESG Pioneer 50 Index"
• Consistently won Lenovo's Quality Diamond Award
• Implemented internal support mechanisms to address production challenges during the Fujian COVID-19 outbreak

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and resulting lockdowns in Fujian province
• Shortage of materials, containers, and personnel during the pandemic
• Climate change impacts (e.g., flooding)
• Meeting ESG regulations in various countries

Mitigation Strategies

• Implemented internal support mechanisms (staff from different departments supporting production lines)
• Developed alternative sourcing strategies
• Established emergency response plans for supply chain disruptions
• Actively promoting digitalization and intelligent innovation to improve efficiency and reduce emissions

Supply Chain Management

Responsible Procurement

• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Awards & Recognition

• Lenovo Quality Diamond Award
• ESG Pioneer 50 Index