Lenovo 2013 Annual Report Download - page 88

CORPORATE SOCIAL RESPONSIBILITY REPORT
Lenovo Group Limited 2012/13 Annual Report
86
This continued growth created significant challenges
in managing the integration and alignment of new
partnerships, new acquisitions, new business units and new
facilities into the Lenovo Global Environmental Management
System. During this major growth period we maintained
focus on the key commitments of our Environmental Policy:
working to ensure compliance, acting to prevent pollution
and reduce our environmental impact, striving to develop
products with industry leading environmental attributes and
pushing to continually improve our global environmental
performance.
These challenges included:
• Assuring the environmental attributes of network
storage products under the LenovoEMC and Iomega
brands are aligned with Lenovo’s EMS requirements.
The alignment of environmental processes and targets
are still in the integration process for the newly formed
LenovoEMC joint venture.
• Integrating Stoneware, the cloud computing company
based in Indiana, U.S., into Lenovo’s PC+ business.
The environmental system of this acquired company
will comply with all of Lenovo’s environmental
requirements.
• Assuring the design of the new manufacturing site in
Itu, Brazil, has environmental attributes that minimize
its environmental impact. The EMS for this site will be
integrated into Lenovo’s global EMS.
• Integrating the acquired CCE operations in Brazil
into Lenovo’s EMS. Taking into account unique
opportunities of environmental features that this facility
can offer will help Lenovo incorporate CCE into its
EMS.
• Completing the expansion of the Whitsett, North
Carolina, U.S. manufacturing and distribution center
by including several environmental practices into
the construction and fit-out of the building such as
using recycled material, regional products, and/or
implementing energy efficiency features.
• Ensuring a smooth integration of a new MIDH facility
in Wuhan, China into Lenovo’s EMS procedures.
Environmental compliance management during rapid
growth can also be a challenge. FY 2012/13 saw
increases in the number of products offered by Lenovo
and the number of countries in which we offer them.
At the same time, the year brought new regulatory and
voluntary compliance commitments. Lenovo’s compliance
organization is supported by a global network of internal
environmental focal points and external partners.
We also support our commitment to compliance through
internal and external audits of our own facilities and those
of our suppliers. The environmental and health and safety
management systems at both our manufacturing and
development sites are subjected to internal audits at least
annually. These sites also undergo third-party environmental
and health and safety audits at least once every three
years, with most sites being audited twice every three
years.
Lenovo also acts to ensure compliance in its supply chain,
with Lenovo personnel performing environmental audits
at the sites of our largest suppliers and those whose
services potentially present significant environmental risks.
We also require that our largest suppliers comply with
the Electronics Industry Code of Conduct and verify this
compliance through third-party audits. During FY 2012/13
Lenovo drove Tier 1 suppliers to perform 22 self-audits.
Moreover, Lenovo has validated common suppliers for
Medion, NEC and suppliers covered by our existing audit
program.
In FY12/13, Lenovo added increased focus on
environmental and sustainability risks into Lenovo’s formal
risk management process. Lenovo’s risk management
evaluation template now includes environmental risk
categories such as environmental incidents, catastrophic
weather conditions, and supply chain disruptions, among
others. Annually, each business unit is required to identify
risks, assess their impacts on Lenovo’s strategy execution
and develop risk mitigation plans.
Lenovo also continues to work internally and externally
to reduce the environmental impact of its operations.
The positive results of these efforts were demonstrated
by the achievement of the first milestone of our ten-year
greenhouse gas (GHG) reduction commitments at the
beginning of FY 2011/12. As of March 31, 2011, we
reduced our absolute Scope 2 greenhouse gas emissions
relative to FY2009/10 by 10.4%. We also met our goal
of either offsetting or eliminating all Scope 1 emissions,
reducing our actual emissions by greater than 16.5% and
purchasing offsets to carbon balance the remainder.
Lenovo achieved our second milestone to reduce Scope
2 emissions by 13% relative to FY 2009/10 and offset or
eliminate all Scope 1 emissions on target by March 31,
2013. We accomplished this by:
1. Implementing energy efficiency projects at our
facilities (HVAC upgrade in Bratislava, Slovakia; low
energy lighting in Huiyang, Beijing, Shanghai, China
and Yokohama, Japan; AC control optimization in
Chengdu, China).