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2009/10 Annual Report Lenovo Group Limited
48
CORPORATE GOVERNANCE
Lenovo offers product take-back and recycling programs for both consumer and business customers worldwide.
Lenovo offers these programs in every country it conducts business, with many of those programs free to the
consumer. Lenovo’s free recycling program in China, which was introduced in 2006, has led to a paradigm shift
in asset recovery for the country. For business customers, Lenovo’s Asset Recovery Service (ARS) provides
computer take-back, data destruction, refurbishment and recycling services.
Global Supply Chain
Lenovo is focused on driving sustainable activities through its internal operations as well as the operations of its
global suppliers. The Company has driven numerous process improvements initiatives that have had an immediate,
positive impact on the environment. Examples include local manufacturing strategies to shorten ship requirements,
the award winning use of thermoplastics and other recycled packaging materials. All of these initiatives help reduce
the environmental impact from Lenovo products. All Lenovo supply chain facilities meet ISO14001 requirements.
As a member of the Electronics Industries Citizenship Coalition (EICC), Lenovo is helping to lead a global,
standards-based approach to monitoring suppliers across a broad range of sustainability and social responsibility
issues. Lenovo’s policies and processes are consistent with the requirements of the EICC for ensuring that working
conditions in the electronics industry supply chain are safe, that workers are treated with respect and dignity and
that manufacturing processes are environmentally responsible. By working together, Lenovo and other member
companies are creating a comprehensive strategy for a standards-based approach for monitoring suppliers’
performance across several areas of social responsibility.
As an EICC member, Lenovo requires each of its tier one suppliers to adhere to the program including agreement
to conduct compliance audits using third-party EICC auditors. The company’s direct suppliers are required to fully
comply with EICC standards in the areas of labor, environment, ethics, health & safety and management systems.
During this past fiscal year, Lenovo has continued to work with its direct suppliers to expand EICC compliance to
tier two suppliers.
In 2009, Lenovo completed third party independent EICC compliance audits on five manufacturing facilities
in China and India. The audit results were strong, validating Lenovo’s high standards for its own supply chain
operations.
Lenovo also continues to optimize its global logistics program to drive additional product volumes to shipping
methods that are more environmentally friendly, such as ocean vessels and rail. In FY2009/10, Lenovo shifted
11 percent of its notebook shipments from high carbon air transport to lower carbon ocean shipping. Lenovo
continues its work with logistics partners to ship products responsibly, maintaining its membership with the
EPA’s SmartWay Transport program. Finally, Lenovo completed a risk assessment of its China-based carriers for
EICC non-compliance. Risks were judged to be minimal.
Social Investments
Lenovo’s “Hope through Entrepreneurship” program was developed to encourage individuals around the world to
make an impact. This innovative program encourages global business development while helping transform the
lives of people and their communities worldwide. During 2009, Lenovo’s support of The Millennium Villages Project
(MVP), a partnership between the Earth Institute at Columbia University, Millennium Promise, and the United
Nations Development Program (UNDP), contributed to MVP’s effort to reduce extreme poverty in sub-Saharan
Africa while specifically addressing MVP’s goal of providing computer infrastructure support to the region. In
Greater China, Lenovo is actively working to boost the growth of Greater China’s charitable causes via programs
supporting youth entrepreneurship and venture philanthropy. Also, during FY 2009/10, Lenovo and its employees
supported various global disaster relief efforts including relief efforts in Haiti, Chile, and Taiwan. Lenovo’s support
for the Haiti earthquake disaster included financial support for the Medical Missionaries, PC donations to the
American Red Cross, and a global employee charitable campaign with employee donations supporting the
American Red Cross.