Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Waste Management
• Supplier Responsibility
• Diversity & Inclusion
• Product Safety
• Employee Well-being
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 10.5% from FY 2009/10 to FY 2010/11
• Improved notebook ocean shipments by 18% in FY 2009/10
• Achieved 89.7% reuse/recycling rate for solid waste in FY 2010/11
• Reduced paper and plastic shipped with products by over 4 million pounds in two years
• Became the first computer manufacturer to obtain UL Environment’s Sustainable Products Certification (Gold level) for the IEEE 1680.1 standard

Social Achievements

• Launched Women In Lenovo Leadership (WILL) initiative
• 99% of Tier one suppliers committed to the EICC code
• 351 Lenovo employees donated 309 pints of blood
• Donated US$1,000,000 to the Japan Red Cross for disaster relief
• Supported various education initiatives with donations totaling approximately US$100,000

Governance Achievements

• Complied with the code provisions of the Code on Corporate Governance Practices required for companies traded on the Hong Kong Exchange
• Established four Board Committees: Audit Committee, Compensation Committee, Strategy Committee and Governance Committee
• Implemented an Anti-Bribery and Anti-Corruption Policy
• Established a Code of Conduct in 2009

Climate Goals & Targets

Environmental Challenges

• Challenges in measuring performance consistently across all global operations
• Data limitations and exclusions for certain metrics
• Supply chain disruptions (implied)
• Achieving consistent implementation of sustainability programs across acquired companies

Mitigation Strategies

• Developing a materiality-weighted approach for defining sustainability priorities
• Adding new indicators gradually to ensure high-quality and consistent data
• Formalizing program management and corporate governance of sustainability programs
• Proactive business integration efforts to ensure consistent implementation across acquired companies

Supply Chain Management

Supplier Audits: Third-party EICC audits at six manufacturing facilities; ongoing EICC validation audits

Responsible Procurement

• Commitment to EICC Code of Conduct; formal agreements with 100% of targeted suppliers; supplier training events

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3.1 (Application Level C)

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ENERGY STAR® qualified products; EPEAT™ Gold rated products; UL Environment’s Sustainable Products Certification (Gold level) products; low halogen products; products with post-consumer recycled content

Awards & Recognition

• Hang Seng Corporate Sustainability Index Series (A+ rating); oekom Research AG (Prime rating); numerous product awards for energy efficiency and environmental design

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Waste Reduction
• Water Management
• Human Rights
• Supplier Responsibility
• Product Sustainability
• Employee Well-being
• Community Investment
• Governance

Environmental Achievements

• Increased carbon emissions reduction target from 20% to 40% by 2020 relative to FY 2009/10 baseline.
• Achieved a CDP 2015 disclosure score of 100.
• CDP placed Lenovo in performance band B.
• Received a Corporate Sustainability Award at the CDP China Report launch event.
• Signed the American Business Act on Climate Pledge.
• Implemented new energy efficiency projects worldwide, including ISO 50001 Energy Management System in all EU locations.
• Purchased renewable energy commodities to support solar, wind and hydro projects.

Social Achievements

• Increased interim reduction targets for Scope 1 and 2 GHG emissions from 20% to 40% by 2020.
• Continued to demonstrate sustainability and social leadership with various programs.
• Made significant progress in conflict minerals program (95% of suppliers have conflict minerals policies, 100% conflict-free status on tantalum).
• Implemented new energy efficiency projects worldwide.
• Purchased renewable energy commodities to support solar, wind and hydro projects.
• Improved conflict free status by 10% relative to FY 2014/15.

Governance Achievements

• Complied with all “comply or explain” provisions as set out in the ESG Guide.
• Established three Board Committees: Audit Committee, Compensation Committee, and Nomination and Governance Committee.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Significant change and transformation at the company and across the industry.
• Challenges in measuring performance and delivering trending information.
• Increased costs and technical issues related to biobased polymers.
• Product quality assurance issues preventing complete elimination of EPS.
• Cost impacts preventing biodegradable packaging for servers and desktops.
• Waste intensity increased due to acquisition of Motorola Mobility and System x.
• Global waste recycling rate did not meet 90% goal.
• Global energy intensity increased due to acquisition of Motorola Mobility and System x.

Mitigation Strategies

• Increased GHG emission reduction targets.
• Regularly conducts assessments to identify and categorize material concerns.
• Engages with stakeholders to identify material issues.
• Implemented a Supplier Code of Conduct.
• Enhanced climate change commitments and renewable energy portfolio.
• Supported development of standardized tools to calculate product’s carbon footprint.
• Provided free consumer recycling options.
• Continued use of post-consumer recycled content.
• Implemented new energy efficiency projects.
• Purchased renewable energy commodities.
• Integrated acquired System x and Motorola Mobility supply chain sustainability programs.

Supply Chain Management

Supplier Audits: 95% of Category 3 suppliers audited

Responsible Procurement

• Supplier Code of Conduct
• EICC Code of Conduct
• Conflict Minerals Policy
• Environmental specifications
• Hazardous material avoidance

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic weather conditions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4.0, Hong Kong Stock Exchange ESG Reporting Guide

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient products
• Products with recycled content
• Products with reduced packaging

Awards & Recognition

• CDP Corporate Sustainability Leadership Award
• CDP China Report Corporate Sustainability Award
• Hang Seng Corporate Sustainability Index constituent stock

Environmental Metrics

ESG Focus Areas

• Supply chain
• Environmental footprint
• Sustainable products and manufacturing
• Community investments

Environmental Achievements

• Reduced global Scope 1 and 2 Greenhouse Gas emissions by 32 percent since 2010
• Launched a closed-loop recycled plastic program incorporating recycled plastic from end-of-life IT and electronics products in the V410z All-in-One desktop and ThinkVision T22v-10 monitor
• Incorporating approximately 10 to 17 percent post-consumer recycled content plastic in Lenovo high-end server products
• Introduced innovative, bio-based packaging materials — like bamboo and sugar cane — driving down packaging weight to reduce waste, carbon emissions and shipping costs
• Achieved ISO 50001 Energy Management System (EnMS) certification at all 36 Lenovo locations in the European Union and expanded EnMS to Beijing headquarters

Social Achievements

• Increased supply chain metrics across the board by approximately five percent
• Expanded activities to support governmental and non-governmental bodies in managing conflict minerals, improving conflict-free status from 80 percent to 82 percent
• Launched inaugural Global Week of Service
• Created the Lenovo Foundation to empower minority populations with access to science, technology, engineering and math education
• Recognized for excellence in employee wellness on three continents

Governance Achievements

• Complied with the code provisions of the Corporate Governance Code and the Corporate Governance Report
• Received the Hong Kong Institute of Certified Public Accountants “Best Corporate Governance” award multiple years in a row
• Implemented an Anti-Bribery and Anti-Corruption Policy

Climate Goals & Targets

Environmental Challenges

• Excessive working hours and insufficient time off in some supply chain locations
• Demand planning and excessive inventory liability impacts
• Forecast accuracy challenges
• Growth in business and procurement spend increasing GHG emissions
• Capturing 100 percent of supplier operational activity and measuring it precisely

Mitigation Strategies

• Strategic and tactical demand and supply planning with suppliers
• Dynamic part-time workforce (constrained by RBA requirements)
• Strengthening suppliers’ emissions and environmental controls
• Implementing energy efficiency projects and using renewable energy sources
• Purchasing renewable energy certificates and carbon offsets

Supply Chain Management

Supplier Audits: 90% of identified suppliers audited

Responsible Procurement

• Supplier Code of Conduct
• RBA Code of Conduct
• Environmental specifications
• Hazardous material avoidance

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic weather conditions

Transition Risks

• Supply chain disruptions

Opportunities

• Energy efficiency improvements
• Renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core option, Hong Kong Stock Exchange’s ESG Guide

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Accredited third parties (Bureau Veritas)

UN Sustainable Development Goals

• Goal 4 (Education)
• Goal 5 (Gender equality)
• Goal 8 (Decent work)
• Goal 9 (Industry, innovation)
• Goal 12 (Responsible consumption)
• Goal 13 (Climate action)

Lenovo's programs contribute to these goals through STEM education, women's leadership development, safe workplaces, innovation in sustainable technologies, recycled materials, and GHG emission reduction targets.

Sustainable Products & Innovation

• V410z All-in-One desktop with CL PCR
• ThinkVision T22v-10 monitor with CL PCR
• ThinkPad L Series with PCC
• Warm-water cooled servers

Awards & Recognition

• CDP Award of Entrepreneurship on Responding to Climate Change
• AA rating on the 2017 Hang Seng Corporate Sustainability Index
• Highest ranked company in industry class on Corporate Knights Global 100
• 70/100 CSR Gold rating from EcoVadis

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Manufactured 50 million laptops using low-temperature solder, reducing greenhouse gas emissions equivalent to more than 4.25M liters of gasoline per year since 2018.
• Eliminated 54 tons of plastic tape every year through streamlined packaging.
• Helped commercial companies offset more than 1 million metric tons of CO2.

Social Achievements

• Improved employee experience and increased productivity through sustainable solutions.
• Partnered with Debeka Group to implement a sustainable technology solution reducing waste and environmental impact.

Governance Achievements

• Commitment to reaching net-zero greenhouse gas emissions by 2050.
• By FY 2025/26, 100% of Lenovo PC products will contain post-consumer recycled content.

Climate Goals & Targets

Environmental Challenges

• E-waste management
• Energy consumption in data centers
• Supply chain sustainability

Mitigation Strategies

• Asset Recovery Services (ARS) program for minimizing e-waste.
• Lenovo Neptune direct-water cooling for data centers, reducing energy consumption up to 40%.
• 98% of procurement is with fewer than 130 large suppliers who typically have robust sustainability programs.

Supply Chain Management

Supplier Audits: 98% of procurement is with fewer than 130 large suppliers who typically have robust sustainability programs.

Responsible Procurement

• Working with suppliers with robust sustainability programs.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ThinkPad X1 Yoga
• ThinkAgile HX series
• ThinkPad X1 Carbon

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy management
• Product end-of-life management
• Product energy efficiency and carbon footprint
• Product materials
• Product packaging
• Product repairability
• Supply chain management - environmental
• Transportation and distribution
• Waste management
• Water management
• Cyber security and data privacy
• Ethics and integrity
• Innovation
• Product quality and safety
• Regulatory compliance
• Reporting and disclosures
• Stakeholder engagement
• Community engagement
• Ethical Artificial Intelligence (AI)
• Human rights
• Health and safety
• Diversity and inclusion
• Labor practices
• Philanthropy

Environmental Achievements

• On-track for 2030 emissions reductions goals and committed to net-zero emissions by 2050.
• More than 400 Lenovo products have been designated with Climate+TM by EPEAT.
• Reduced packaging consumption by 672 metric tons in FY 2023/24.
• Eliminated 548 metric tons of plastic in packaging.
• Expanded use of recycled aluminum and magnesium to more ThinkPad products and all-in-one (AIO) products.
• Introduced post-consumer recycled rare earth metals into select products.
• Increased use of CL PCC helping to sustain the demand for recycled plastic materials from IT products.

Social Achievements

• Launched a Self-ID Campaign in 2023 to better understand employee diversity.
• Received the highest-ever engagement score on the Annual Lenovo Listens employee survey.
• Employees grew Love on Month of Service for the seventh consecutive year, tracking more hours volunteered than ever before.
• Achieved a perfect score on the Disability Equality Index (DEI).

Governance Achievements

• Maintained AAA status from MSCI.
• Received the Hang Seng Corporate Sustainability Index award with the strongest score in the IT Industry for Environmental and Social Achievements and an AA score overall.
• Received HKICPA Gold Award in Most Sustainable Companies and Organizations for the eleventh year.
• Ranked number eight in Gartner’s 2023 Global Top 25 Supply Chain ranking and number one in the Gartner Asia Pacific Supply Chain for the second year running.
• Committed to UNESCO’s Recommendation on the Ethics of Artificial Intelligence.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events.
• Challenges of using recycled content in the design and manufacture of smart connected devices.
• Challenges in achieving executive representation goals for FY 2025/26.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Engineers work closely with suppliers to develop and qualify new grades of plastic resins.
• Investing in several career development programs to ensure a strong pipeline of diverse talent.

Supply Chain Management

Supplier Audits: Approximately 95% of suppliers by spend have conducted an RBA VAP audit or an equivalent independent, third-party audit.

Responsible Procurement

• Supplier Code of Conduct
• RBA Code of Conduct
• EcoVadis platform
• Responsible Minerals Initiative (RMI)

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes impacting operational efficiency and supply chain

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and sustainability services

Reporting Standards

Frameworks Used: GRI Standards, Hong Kong Stock Exchange's ESG Reporting Guide

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, ISO 9001:2015, ENERGY STAR®, LEED Gold

Third-party Assurance: Accredited third parties provided verification services for certain energy, greenhouse gas (GHG) emissions, waste, and water data.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 10 (Reduced inequalities)
• Goal 4 (Quality education)

The report details how various initiatives contribute to these goals throughout.

Sustainable Products & Innovation

• Lenovo Neptune™ liquid cooling technology
• Products with recycled materials
• Energy-efficient products

Awards & Recognition

• Climate+TM Champion by EPEAT
• Canalys Sustainability Champion Award
• Hang Seng Corporate Sustainability Index award
• HKICPA Gold Award
• Gartner Global Supply Chain Top 25 ranking
• Champion status in the 2023 Canalys Global Sustainable Ecosystems Leadership Matrix
• Best Value Chain Initiative of the Year at CRN’s inaugural Sustainability in Tech summit