Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community involvement
• Corporate governance and ethics
• Diversity
• Environmental responsibility
• Health and safety
• Human rights and labor standards
• Supplier requirements

Environmental Achievements

• Decreased corporate carbon footprint by three percent from 2007 to 2008, primarily by optimizing production in Chihuahua and Juarez, Mexico, and Cebu, Philippines, and by completing facility upgrades and reducing square footage at our facility in Lexington, Ky.
• Recycled 74 percent of non-hazardous waste and 57 percent of hazardous waste in 2008.
• Reduced packaging materials by more than 25 percent in some cases.
• 94 percent of Tier 1 suppliers were ISO14001 certified, and 75 percent were OHSAS 18001 certified by the end of 2008.
• Successfully eliminated 98 percent of PVC in inkjet cartridge packaging worldwide.

Social Achievements

• Earned a perfect score of 100 on the Human Rights Campaign’s Corporate Equality Index for the fourth year in a row.
• Lexmark volunteers from our corporate headquarters in Lexington, Ky. completed the construction of our 13th Lexmark funded and Lexmark employee-constructed Habitat for Humanity house.
• In Asia Pacific, Lexmark partnered with Gawad Kalinga (GK) to build village communities.
• In Europe, trained more than a thousand employees and expanded sustainability training to customers.
• U.S. employees donated $1.2 million to the United Way.

Governance Achievements

• Joined the U.N. Global Compact in June 2008.
• Received the When Work Works, Alfred P Sloan Award for Excellence in Workplace Flexibility in October 2008.

Climate Goals & Targets

Environmental Challenges

• Potential for regulatory and physical risks to our business due to environmental sustainability trends.
• Climate change and its potential impacts, including new regulations and weather disruptions.
• Business disruptions due to natural and man-made disasters.

Mitigation Strategies

• Implemented numerous programs to recover, remanufacture and recycle products.
• Business continuity plans in place for each site to assess risks faced as a result of climate change.
• Offers a wide range of energy-efficient imaging devices and software solutions.

Supply Chain Management

Supplier Audits: A number of Tier 1 suppliers underwent third-party audits in 2008 to monitor compliance with EICC guidelines.

Responsible Procurement

• Supplier Code of Conduct
• EICC Electronics Industry Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Natural disasters

Transition Risks

• Regulatory changes requiring reductions in energy usage

Opportunities

• Demand for energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Sustainable Products & Innovation

• Products with Instant Warm-Up fusing technologies and factory standard duplex options
• Energy Star qualified products
• Products with Eco-Mode feature
• Products with Galvo Printhead technology

Awards & Recognition

• Energy Star Partner
• When Work Works, Alfred P Sloan Award for Excellence in Workplace Flexibility
• Top Environmental Performer Award (Philippines Economic Zone Authority)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• 42% reduction in energy consumption since 2005
• 42% reduction in greenhouse gas emissions since 2005
• 54% reduction in water usage since 2005
• 80% recycling rate for waste generated in 2014
• 34% of cartridge material returned were reused

Social Achievements

• Launched parental time off program in the U.S.
• 97% of employees in North America trained on human rights aspects
• No findings of human rights grievances in over 12 years
• 0.28 injuries and 1.6 lost work days per 100 full-time employees

Governance Achievements

• Board of Directors’ Corporate Governance and Public Policy Committee expanded environmental responsibilities
• Annual advisory stockholder vote to approve executive compensation
• Shareholder-approved Board Declassification phase-in continued
• No legal cases regarding corrupt practices were brought against Lexmark or our employees during 2014

Climate Goals & Targets

Environmental Challenges

• Climate change and associated weather disruptions can affect operations
• Electronic waste obligation under the WEEE Directive
• Potential impact of climate change regulations
• Business disruptions due to natural and man-made disasters

Mitigation Strategies

• Business continuity plans in place for each site
• Regional manufacturing to improve supply chain efficiency and reduce emissions
• Investments in energy efficiency at headquarters
• Use of environmentally progressive transportation partners
• Implementation of Lexmark Print Management solution to reduce paper consumption

Supply Chain Management

Supplier Audits: Third-party audits for several Tier 1 suppliers

Responsible Procurement

• Lexmark Supplier Code of Conduct
• EICC Code of Conduct
• Conflict-free minerals supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Natural and man-made disasters (earthquakes, tsunamis, floods, hurricanes, typhoons, fires, extreme weather, environmental hazards, power shortages, water shortages, telecommunications failures)

Transition Risks

• Climate change regulations requiring energy reductions

Opportunities

• Demand for energy-efficient products

Reporting Standards

Frameworks Used: GRI G4, ISO 26000, UN Global Compact

Certifications: ISO 14001, OHSAS 18001, R2

Sustainable Products & Innovation

• Energy-efficient printers (MX910 series)
• Products with accessibility features
• Software solutions to reduce paper usage

Awards & Recognition

• CR’s 100 Best Corporate Citizens (ranked 35th)
• Global Compact 100
• America’s Most Trustworthy Public Companies (ranked 5th)
• EcoVadis Gold CSR Rating
• Top 25 Southeastern Sustainable Companies (ranked 1st in Kentucky)
• Manufacturing Leadership 100 Awards (Supply Chain Leadership, Customer Value Leadership)
• When Work Works Award
• HRC’s Best Places to Work
• Supplier Recognition Award (CSX)
• Ambassadors of Science Literacy
• Bicycle Friendly Business Award—Silver Class
• International ICT Awards

Environmental Metrics

ESG Focus Areas

• Diversity, Equity and Inclusion (DEI)
• Environmental, Social and Governance (ESG)
• STEM education
• Climate Change

Environmental Achievements

• Reduced Scopes 1 and 2 emissions 62 percent since 2005
• Achieved a 34 percent reduction in Scopes 1 and 2 GHG emissions in 2020
• Reduced water consumption by 34% since 2015
• 98 percent of waste generated worldwide was non-hazardous in 2020
• Reduced total waste generated by 59 percent since 2015

Social Achievements

• 99% of global workforce trained in human rights issues
• Received 2020 Working Mother 100 Best Companies, Best Companies for Dads, and Top Companies for Executive Women awards
• Earned a perfect score on the Corporate Equality Index (CEI) for the 15th year
• Lexmark Cartridge Collection Program reused or recycled over 100 million cartridges
• Actively supporting the circular economy for 30 years

Governance Achievements

• Executive Compensation of the CSO and several other Vice Presidents and Directors are directly associated with Lexmark’s ESG performance
• No legal cases regarding corrupt practices were brought against Lexmark or our employees during 2020
• No significant fines or nonmonetary sanctions for noncompliance of laws and regulations related to accounting fraud, human rights, workplace discrimination, health and safety or corruption during this reporting period.

Climate Goals & Targets

Environmental Challenges

• Climate change and associated weather disruptions can affect operations
• Electronic Waste Obligation under the EU WEEE Directive
• Potential impact of climate change regulations
• Supply chain disruptions due to natural and man-made disasters

Mitigation Strategies

• Business continuity plans in place for each site
• Estimated liability for WEEE costs
• Environmental policies and programs to reduce greenhouse gases
• Working with environmentally progressive partners for transportation and logistics
• Regional manufacturing to reduce GHG emissions

Supply Chain Management

Supplier Audits: Third-party audits for several Tier 1 suppliers

Responsible Procurement

• Lexmark Supplier Code of Conduct
• RBA Code of Conduct
• ESG considerations in supplier selection and retention
• Incentives for suppliers to adhere to RBA guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Natural and man-made disasters (earthquakes, tsunamis, floods, hurricanes, typhoons, fires, extreme weather conditions, environmental hazards, power shortages, water shortages, telecommunications failures)

Transition Risks

• New regulations requiring energy reductions

Opportunities

• Demand for energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, ISO 26000, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 9001, R2, LEED Gold, ENERGY STAR, ISO 27001

Third-party Assurance: Apex Companies, LLC (Scopes 1 and 2 GHG emissions)

UN Sustainable Development Goals

• Goal 6
• Goal 9
• Goal 12
• Goal 13
• Goal 15
• Goal 8
• Goal 17

Lexmark supports the UN SDGs through various initiatives related to water conservation, circular economy, climate change mitigation, biodiversity, economic growth, and global partnerships.

Sustainable Products & Innovation

• Energy-efficient products
• Products designed for long life and durability
• Products incorporating recycled materials
• Remanufactured products

Awards & Recognition

• 2021 ENERGY STAR Excellence in Marketing Award
• ISRI 2020 Design for Recycling Award
• Manufacturing Leadership awards in sustainability leadership
• EcoVadis Gold level rating

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion
• Circular Economy
• Human Rights
• Supply Chain Responsibility

Environmental Achievements

• Reduced energy consumption by 26% from 2015 to 2022 (goal was 20% reduction by 2025)
• Reduced Scope 1 and 2 emissions by 43% from 2015 to 2022 (goal was 40% reduction by 2025)
• Reduced water withdrawal by 40% from 2015 to 2022 (goal was 35% reduction by 2025)
• Reduced total waste generated by 58% from 2015 to 2022 (goal was 50% reduction by 2025)
• Achieved 40% PCR plastic in Lexmark-branded and designed devices (goal is 50% by 2025)
• Achieved 41% PCR plastic in Lexmark-branded and designed cartridges (goal is 50% by 2025)
• Juárez, Mexico facility is CarbonNeutral® manufacturer certified
• Two devices received CarbonNeutral® product certification
• EcoVadis Platinum sustainability rating (top 1% of over 100,000 companies assessed)

Social Achievements

• 98% of global workforce trained in human rights
• 96% of employees said people at Lexmark treat each other with respect
• 94% of employees said they can be themselves at work
• 0.14 injuries per 100 employees in 2022

Governance Achievements

• Sustainability is integrated across all business areas and levels
• Lexmark’s sustainability strategy is reviewed by the executive leadership team and Board of Directors
• Compensation of the CSO and several other executives is linked to ESG performance
• No legal cases regarding corrupt practices were brought against Lexmark or its employees during 2022

Climate Goals & Targets

Environmental Challenges

• Climate change and associated weather disruptions affecting operations
• Electronic waste obligation under the WEEE Directive
• Potential impacts of climate change regulations
• Managing risks related to corruption
• Ensuring compliance with numerous environmental and regulatory matters

Mitigation Strategies

• Comprehensive Enterprise Risk Management (ERM) program
• Business continuity plans for each site to address climate change risks
• Proactive pollution prevention plans at all manufacturing and R&D facilities
• Employee and supplier codes of business conduct to mitigate corruption risks
• ISO 14001:2015 certification for environmental management systems
• ISO 45001:2018 certification for occupational health and safety management systems

Supply Chain Management

Supplier Audits: 100% of Tier 1 final assembly suppliers underwent a CSR assessment in 2022; RBA VAP audits conducted

Responsible Procurement

• Lexmark Supplier Code of Conduct
• RBA Code of Conduct
• UN Global Compact principles
• Incentives for suppliers to adhere to RBA guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, natural disasters

Transition Risks

• Regulatory changes requiring energy reductions

Opportunities

• Demand for energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, ISO 26000

Certifications: ISO 14001, ISO 45001, R2, CarbonNeutral®

Third-party Assurance: SGS

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 15: Life on Land

Lexmark supports these SDGs through various initiatives detailed in the report.

Sustainable Products & Innovation

• Energy-efficient products
• Products designed for durability and long life
• Products incorporating recycled materials

Awards & Recognition

• EcoVadis Platinum Rating
• ENERGY STAR® Partner of the Year Award
• Quocirca Sustainability Leader
• Sustainability Awards
• F.A.Z.-Institut Top Employer
• Great Place to Work
• Human Rights Campaign (HRC) Corporate Equality Index
• Forbes World’s Top Female-Friendly Companies
• Forbes America’s Best Midsize Employers
• Manufacturing Leadership Award
• Clean Air and Climate Change Award
• Best Adoption Friendly Workplaces
• Top Company for Executive Women
• HRD’s five-star Employer of Choice Award
• ESR Award
• International ICT Awards
• ISRI 2020 Design for Recycling Award
• Manufacturing Leadership awards in sustainability leadership

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Human Rights
• Supply Chain Transparency
• Ethics
• Occupational Health and Safety
• Diversity and Inclusion
• Business Continuity and Risk Management
• Customer Health and Safety
• Data Privacy

Environmental Achievements

• Achieved carbon neutrality across 51% of its operations in 2023
• Reduced Scope 1 & 2 emissions by 72% since 2005
• Reduced water withdrawal by 44% since 2015
• Reduced total waste generated by 56% since 2015
• Increased average PCR plastic in Lexmark designed and branded laser devices to 40% by mass
• Increased reclaimed plastic through PCR and reuse in all Lexmark designed and branded cartridges to 43% by mass
• Reduced single-use plastics in Lexmark designed and branded hardware and supplies packaging by 33% from 2018 to 2023
• Saved over 11,900 trees in 2023 through paperless print testing

Social Achievements

• 99% of employees acknowledged understanding of the 2023 Code of Business Conduct
• 98% of the workforce acknowledged business ethics and anti-corruption training annually
• 99% of global workforce trained in human rights
• 44% global representation of female employees in 2023
• 41% global representation of female managers in 2023
• 0.15 injuries per 100 employees in 2023
• Numerous awards and recognitions for sustainability and diversity

Governance Achievements

• Sustainability integrated across all business areas and levels
• Sustainability strategy reviewed by executive leadership and Board of Directors
• Zero legal cases regarding corrupt practices in 2023
• 100% of Lexmark procurement spending subject to spending-analysis process
• ISO 27001 certification for Managed Print Services and Lexmark Cloud Services

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions from product use and supply chain
• Further increasing the use of recycled materials
• Maintaining a diverse and inclusive workforce

Mitigation Strategies

• Science Based Targets Initiative (SBTi) validated emission reduction targets
• Goals to increase renewable energy sourcing to 100% by 2030 and increase PCR content in products and cartridges to 50% by 2025
• Diversity Advisory Council and Diversity Network Groups (DNGs)

Supply Chain Management

Supplier Audits: 100% of Tier 1 final Lexmark branded hardware assembly suppliers audited every two years

Responsible Procurement

• RBA Code of Conduct
• Lexmark Supplier Code of Conduct
• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: RBA Code of Conduct, UN Global Compact, UN Guiding Principles on Business and Human Rights, Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, OECD Guidelines for Multinational Enterprises, Science Based Targets initiative (SBTi)

Certifications: ISO 14001:2015, ISO 45001:2018, CarbonNeutral®, EcoVadis Platinum, ENERGY STAR®, R2, ISO 27001

Third-party Assurance: KERAMIDA (GHG emissions)

UN Sustainable Development Goals

• 7, 12, 13, 9, 5, 8, 10, 16

Initiatives contribute to these goals through various environmental, social, and governance programs

Sustainable Products & Innovation

• Printers with high PCR content
• Energy-efficient products

Awards & Recognition

• EcoVadis Platinum Rating
• Human Rights Campaign Foundation (HRC)’s Equality 100 Award
• China Environmental United Certification Center Green Leading Enterprise
• Many others listed in the report