Lenovo 2015 Annual Report Download - page 119

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2014/15 Annual Report Lenovo Group Limited
For our FY 2014/15 due diligence cycle, we conducted a full country-of-origin inquiry utilizing the EICC Conflict
Minerals Reporting Template (CMRT) and employed the EICC Conflict-Free Smelter Program and other initiatives to
validate identified smelters as conflict-free compliant. We determined that 80 percent of surveyed suppliers have
conflict minerals policies and require their own suppliers to conduct CMRT reporting. Also, 72 percent of suppliers
indicated they have identified all smelters in their supply chain. We confirmed that 54 percent of reported smelters
have been certified as conflict free by the EICC or by EICC-approved alliance programs, and approximately 21
percent of the remaining smelters are formally in the process of becoming conflict free compliant. Over 96 percent
of the smelters used by Lenovo suppliers are Tantalum-conflict free. We anticipate significant improvement annually
towards becoming fully conflict free.
In FY 2014/15, Lenovo acquired the IBM x86 server and Motorola Mobility businesses and we will be actively
working this coming fiscal year to integrate programs and operations. Both companies have robust incoming
supplier sustainability programs and approximately 50 percent of their respective procurement spend was common
with Lenovo suppliers already in our programs.
Lenovo sees mutual value in promoting diversity in our business relationships. It is a natural part of our business
strategy to create a diverse and competitive supplier base and to strengthen economic development in historically
underutilized communities. Through its Supplier Diversity Program, Lenovo is committed to maximizing the inclusion
of diverse suppliers through identifying opportunities, developing and incubating relationships, creating processes
that encourage diverse supplier integration, and building on our already strong culture of inclusion – The Lenovo
Way.
Lenovo identifies diverse suppliers as those that are at least 51 percent owned and controlled by women, minorities,
veterans, service-disabled veterans, and persons with a disability. Lenovo also includes suppliers that are defined by
the U.S. Federal Government as a Small Disadvantaged Business, HUB Zone business, or small business.
Lenovo partners with a variety of national and regional organizations, such as National Minority Supplier
Development Council (NMSDC), Women’s Business Enterprise National Council (WBENC), and the North Carolina
Institute of Minority Economic Development (NCIMED), to facilitate supplier identification and program development.
Lenovo is also active in local and regional events aimed at promoting, creating opportunities for, and celebrating
diverse suppliers. Our Supplier Diversity Program has grown significantly over the last year and we currently conduct
more than US$135 million in business annually with small and/or certified diverse suppliers.
For more information, please visit our Supplier Diversity website at www.lenovo.com/supplierdiversity.
As an extension of our Occupational Health and Safety (OHS) process, we continue to monitor the performance of
our key worldwide contract manufacturing locations to ensure a high level of regulatory compliance and standard
of care. Rigorous compliance reviews are conducted on an annual basis to validate compliance and overall OHS
related performance. Identified action items are tracked to closure with a focus on high risk and systemic findings or
exposures.
In addition, key contract manufacturing locations are required to have Lenovo-specific Business Continuity Plans
and robust Pandemic Response Plans to further mitigate risk and support employee well-being. Validation checks
are also completed on a periodic basis.