Lenovo 2014 Annual Report Download - page 93

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2013/14 Annual Report Lenovo Group Limited
The Lenovo Environmental Affairs Policy (linked from
www.lenovo.com/environment) provides corporate
direction regarding how Lenovo manages its
environmental impacts. The policy shapes our global
environmental management system, the procedures
and practices that make up that system and related
objectives and targets. The importance of the direction
established by this document is never more evident than
in times of change. During FY2013/14 Lenovo continued
to experience great change – as we grew to become
the world’s largest PC vendors and one of the most
respected technology companies in the world.
Lenovo’s growth continues to provide significant
challenges in managing the integration and alignment
of new employees, 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.
During the past year accomplishments and challenges
included:
• Completion of the integration of Lenovo’s new
manufacturing facility in Itu, Brazil, into our global
EMS.
• Continued integration of CCE operations and
management systems in Brazil into Lenovo’s global
EMS.
• Completion of the integration of the Lenovo Mobile
Business Group’s manufacturing facility in Wuhan,
China, into Lenovo’s EMS.
• The opening of a new manufacturing line in Whitsett,
North Carolina.
Environmental compliance management during rapid
growth can also be a challenge. FY2013/14 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 whose
services potentially present significant environmental
risks. We also require that our suppliers comply with
the Electronics Industry Code of Conduct and verify this
compliance through third-party audits. During FY2013/14
Lenovo drove Tier 1 suppliers to perform 21 self-audits,
covering 37% of Lenovo’s procurement spend. Moreover,
for recent acquisitions Medion and NEC, Lenovo
has validated suppliers covering the majority of their
procurement spend as part of the existing EICC audit
program.
In FY2013/14, Lenovo continued the process begun
in FY2012/13 to formally add environmental and
sustainability risk into our official risk management
process. Lenovo’s 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.