Lenovo 2015 Annual Report Download - page 111

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2014/15 Annual Report Lenovo Group Limited
Environmental compliance management during rapid growth can also be a challenge. FY 2014/15 saw increases
in the number and types 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 organizations whose services potentially present significant environmental
risks. We also require that our suppliers comply with the Electronics Industry Code of Conduct (EICC) and verify this
compliance through third-party audits. During FY 2014/15 Lenovo Tier 1 suppliers performed about 70 self-audits,
covering 60 percent of Lenovo’s procurement spend. In FY 2014/15 Lenovo acquired IBM’s x86 server business
and the Motorola Mobility business, and we will work this coming fiscal year to integrate supply chain programs and
operations. Both companies have robust incoming supplier sustainability programs in place and approximately 50
percent of their respective procurement spend was common with Lenovo suppliers already in our programs.
Environmental and sustainability risks are included in Lenovo’s official risk management process. The risk
management evaluation template 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’s Climate Change Policy (2010) states that Lenovo is committed to reducing the global carbon footprint of
all of its business activities and accepts the findings of current climate science. The policy was updated in February
2015 to support the conclusions as presented by the Fifth Assessment Report (AR5) of the Intergovernmental Panel
on Climate Change (IPCC) – “Climate Change 2014.” Lenovo concurs with the findings and agrees that specific
actions are needed to stabilize atmospheric GHG levels and hold global average temperatures to acceptable
increases. The actions supported by Lenovo include reducing global emissions by 40-to-70 percent between 2010
and 2050 and attaining zero emissions by 2100. These actions align with the global scientific community’s generally
accepted recommendations for maintaining global warming below two degrees Celsius over the 21st century relative
to pre-industrial levels.
Lenovo 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 commitment 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 percent. We also met our goal of either offsetting
or eliminating all Scope 1 emissions, reducing our actual emissions by greater than 16.5 percent and purchasing
offsets to carbon-balance the remainder.