Lenovo 2011 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 of the 2011 Lenovo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 137

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

2010/11 Annual Report Lenovo Group Limited 53
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.
In FY10/11, Lenovo supply chain operations continued
to show improvement in supplier engagement and
commitment to the EICC code. 99% of our Tier one
suppliers are committed to the EICC and have signed
formal agreements. Greater than 80% of Lenovo’s
top production spend suppliers have completed self
assessments to understand where improvements are
needed and/or conducted EICC audits to validate
compliance. In addition to conducting supplier
education and training on EICC code/compliance,
Lenovo partnered with the EICC on supplier training
events relating to topics such as supply chain capability
building, material extraction, working hrs., EICC
eLearning modules, carbon reporting and energy
efficiency.
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% 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 Next Generation Hope Fund is helping
redefine how Lenovo and our employees support the
communities where we live and do business worldwide.
We support the needs of the communities where we live
and do business through select investment opportunities
that leverage our innovation leadership and global
culture. Like our industry leading products, we enable
doers to do more through social investment programs
that support a wide range of programs including those
focused on education, research, entrepreneurship,
disaster relief and regional community outreach. To help
ensure program success, we evaluate the effectiveness
of each investment against predefined goals upon
completion. Lenovo provides assistance through cash
contributions, equipment donations, and employee
volunteer hours. As a company, Lenovo annually
commits 1% of our pre-tax income to programs that
serve society.
Lenovo aims to advance, enhance and extend education
at all levels. We support education related programs
and initiatives through our industry leading products
and technologies, community investments and program
sponsorships. We don’t limit the scope of our education
related social investments but rather we consider each
opportunity based on its own unique merits. Lenovo
donates equipment, provides cash contributions and
lends our expertise to schools and related organizations
across all global markets. Lenovo supports global
education investments in both K-12 and higher
education.