Lenovo 2014 Annual Report Download - page 94

92 Lenovo Group Limited 2013/14 Annual Report
CORPORATE SOCIAL RESPONSIBILITY REPORT
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 commitment at
the beginning of FY2011/12. 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.
Our second milestone to reduce Scope 2 emissions by
13% relative to FY2009/10 and offset or eliminate all
Scope 1 emissions was achieved on target by March
31, 2013. We accomplished this by implementing
energy efficiency projects, installing a solar array at the
manufacturing plant in Shanghai, China and purchasing
Renewable Energy Credits (RECs) and carbon offsets.
In FY2013/14, Lenovo continued our progress in reducing
our greenhouse gas emissions. We achieved a 1%
reduction in global Scope 2 GHG emissions relative to
previous fiscal year and carbon balanced 100% of Scope
1 GHG emissions. We implemented several energy
efficiency projects (AC upgrade in Chengdu, China; low
energy lighting in Morrisville, NC, USA; manufacturing
process & building services improvements in Pondicherry,
India); used renewable energy (solar array in Shanghai,
China; hot water solar system in Huiyang, China and solar
lamps in Beijing, China) and purchased carbon offsets
(45,765 MT CO2e) from carbon offsets projects located
in China and RECs from renewable projects in the United
States (12,621 MWh).
In October 2013, Lenovo was selected for a pilot
emission trading system in Beijing, China as a significant
energy consumption enterprise and as such must meet
an emissions trading requirement and emissions reduction
of 2% year-to-year for our Beijing sites. Lenovo is closely
monitoring other provinces where this pilot program has
been imposed since our sites in Shanghai, Shenzhen,
Huiyang and Wuhan could be impacted in the future.
Lenovo is working on establishing a comprehensive
energy system for Beijing sites to minimize the amount of
carbon emissions allowances we must purchase.
For additional details on Lenovo’s GHG emissions
inventory and management, see Lenovo’s
Sustainability Reports and climate change website:
http://www.lenovo.com/climate.
We are focusing on the next milestone in our ten-year
initiative to reduce Scope 2 emissions by 16% relative
to FY2009/10 by March 31, 2016. All sites continue to
identify and implement energy efficiency projects and
evaluate opportunities to implement the use of renewable
energy.
While we have demonstrated good progress during the
early stages of our ten-year GHG reduction commitment,
we are keenly aware there is still much to be done. In light
of our impressive growth, we realize that accomplishing
our longer term goals will be a significant challenge.
With a continued focus on energy efficiency, Lenovo’s
Global Energy Management Team will work to identify
and implement energy reduction, renewable energy
and carbon offset opportunities that provide the most
cost-effective path to meeting our targets.
We are exploring opportunities to take energy efficiency
to the next level through comprehensive energy efficiency
audits and installing more renewable energy sources
in facilities worldwide. Moreover we are looking into a
carbon fee program and green revolving funds as a mean
for financing energy and GHG reduction projects and
making Lenovo’s business units accountable for their own
emissions and targeted reductions.
Lenovo’s Global Real Estate team analyzed the
environmental impact of all sites larger than 9,000
square feet, including newly acquired sites, evaluated
multiple energy projects and is working on developing
management practices for sustainable real estate.