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1、Lenovo Group Limited2022/23 Environmental,Social and Governance ReportHKD COUNTER STOCK CODE 992RMB COUNTER STOCK CODE 80992Table of contents1.0 Executive letters2A message from our Chairman and Chief Executive Officer4A message from our Chief Legal&Corporate Responsibility Officer62.0 About this re

2、port8About this report10Material topics11Organizational profile13Aligning with the United Nations Sustainable Development Goals143.0 Environmental16Environmental management system(EMS)18Climate change18Waste24Water25Environmentally conscious products26Packaging35Product end-of-life management(PELM)3

3、7Circular economy38Environmental highlights394.0 Social42Labor practices44Health and safety45Diversity and inclusion(D&I)51Training and development59Global philanthropy61Social impact highlight635.0 Governance64ESG governance66Business practices69Product quality management73Innovation756.0 Global su

4、pply chain80Supply chain ESG practices82Supplier diversity937.0 Consolidated metrics94FY 2022/23 consolidated metrics968.0 EMS performance,objectives and targets114FY 2022/23 EMS performance1169.0 Long-term KPI progress122Long-term ESG key performance indicators(KPI)12410.0 Appendix128FY 2022/23 mem

5、berships and associations130Scope of the report131GRI content index132The Hong Kong Stock Exchanges ESG Reporting Guide content index136Executive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI pr

6、ogress Appendix1.0Executive lettersA message from our Chairman and Chief Executive OfficerA message from our Chief Legal&Corporate Responsibility Officer4 64Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportOver the past year,Lenovo has remained committed to building a sustainab

7、le planet,promoting inclusion,closing the digital divide,and being a responsible corporate citizen everywhere we do business.Despite numerous complexities over the past year,we have made noteworthy progress with ESG as an integral part of our strategy,innovation,and operations.Committed to Net-Zero

8、by 2050As a global company,we have seen the impact of climate change on our stakeholders and feel the urgency to combat it together.In the last fiscal year,we were proud to affirm our commitment to reaching net-zero emissions by 2050 with net-zero targets validated by the Science Based Targets initi

9、ative(SBTi)and their first-of-its-kind Net-Zero Standard.As an early adopter of science-based targets,weve been encouraged to watch many of our global technology peers and competitors as well as customers across industries-align their emissions reduction goals to SBTi.By working with SBTi,we are con

10、tributing to a wider body of collaborative data to understand and limit climate change.Beyond our commitments,we have a duty to deliver on emissions reduction efforts through transparent measurement and reporting of our emissions.We approach our near-term 2030 goals with this vision,harnessing our i

11、nnovation to increase the sustainability of our products and operations.We take sustainability into consideration throughout our entire value chain,from design to manufacturing,and from logistics to services.We have a history of designing our products for sustainability and have continued to increas

12、e the use of sustainable materials in our products and packaging.Beyond design,we manufacture our products with sustainability in mind.We are assessing our factories to reduce their carbon footprint with improvements like renewable energy installations,energy efficient lighting,and temperature contr

13、ols.In 2023,we were proud to be part of the standardization for low carbon manufacturing in China,serving as an industry representative to test and establish the group standard for the CESI Certification Co.,LTD.Lenovos Wuhan plant achieved the distinction of being the first and only factory in Chin

14、as information and communication technology industry to be recognized for sustainability by that organization.We have made advancements in our logistics this year,using more biofuel in air and ocean freight and offering our customers more sustainable shipping options through bulk packaging and shipm

15、ents using biofuel.Providing more sustainable choices for our customers is helping to drive our services-led transformation.We are proud to offer sustainable solutions,including Asset Recovery Services and CO2 Offset Services,enabling our customers to increase participation in the circular economy a

16、nd manage their carbon footprint.A message from ourChairman and Chief Executive OfficerExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress Appendix5Lenovo Group Limited 2022/23 Envi

17、ronmental,Social and Governance ReportPromoting Inclusion and Closing the Digital DivideBenefitting our communities is a core motivator for a more sustainable future,while research continues to show that a strong internal culture of integrity and inclusion is the best environment for innovation.We m

18、aintain a focus on both external and internal communities as we work to make a social impact,increase access to technology,and create a more equitable and innovative future.I am proud that for the fourth year,Lenovo was included in the Bloomberg Gender Equality Index.This signals Lenovos commitment

19、to gender equality in the workplace,in addition to our work with United Nations Target Gender Equality program.Lenovo was also honored to be one of the best places to work for LGBTQ+Equality from the Human Rights Campaigns Corporate Equality Index,scoring 100 percent for the fifth consecutive year i

20、n 2022.We believe Lenovos inclusive workplace once again drove record-high employee engagement levels measured in our annual Lenovo Listens Survey,a key achievement that we do not take for granted.Lenovo remains committed to giving back to communities around the world through strategic partnerships

21、and programs that share our smarter technology for all vision.This mission inspires our employees to join Lenovos efforts to close the digital divide by providing access to Science,Technology,Engineering and Math(STEM)education.Lenovo employees have worked together to grow our annual Love On Month o

22、f Service each year.The grassroots effort has directly impacted more than 250,000 individuals to date.Employees also engage in helping communities during times of natural and humanitarian disaster by making contributions to response efforts which are matched by Lenovo.Governing with Integrity and Re

23、silience While we continue our journey to net-zero and work toward more inclusive workplaces and communities,we are focused on governing our global operations with the highest standards of ethics and compliance.Our corporate governance framework includes a Corporate Sustainability Policy,Code of Con

24、duct,and Executive Oversight Committee for our ESG programs.Our We are Lenovo culture emphasizes global teamwork guided by integrity and trust.We are focused on ensuring our customer experience reflects our values of transparency,privacy,and security through our Product Security Office.In the past y

25、ear,Lenovo has received the following recognitions for strong governance:Hong Kong Institute of Certified Public Accountants(HKICPA)Gold Award in Most Sustainable Companies and Organizations section of the Best Corporate Governance and ESG Award,making 2022 the tenth year that Lenovo has been recogn

26、ized by HKICPA for corporate citizenship.Our inaugural green bond tranche was included in the Bloomberg MSCI Green Bond Index and the S&P Green Bond Index,and Lenovos MSCI ranking was upgraded from AA to AAA.For the second consecutive year,Lenovo received the best score in the Information Technology

27、(IT)Industry for our rating from the Hang Seng Corporate Sustainability Index(AA+rating).Lenovo was ranked number nine in the 2022 Gartner Top 25 Supply Chain ranking.We achieved a great deal last year!I am grateful to our ESG experts as they lead us on the most credible path toward sustainability.W

28、e will continue to work with our global stakeholders to build a smarter future for all.Yang Yuanqing Chairman and Chief Executive Officer Lenovo Group Limited6Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportA message from ourChief Legal&Corporate Responsibility OfficerAs Lenov

29、os Senior Vice President and Chief Legal Officer for the past six years,it is my pleasure to write my first letter in the additional capacity of Chief Corporate Responsibility Officer.Lenovo has measured and reported on our sustainability efforts for over 15 years.The increased impacts of climate ch

30、ange and social inequalities,and the need for corporate transparency have rightly amplified our stakeholders attention on both our environmental affairs and broader ESG programs.We remain steadfast on our ESG journey in pursuit of our vision to provide smarter technology for all.During FY 2022/23,Le

31、novo maintained focus on transforming into a global technology powerhouse.We developed innovative solutions that reshaped the way we and our customers conduct business around the world and helped to preserve the ecosystems on which our future depends.Our commitment to sustainability is underscored b

32、y our cultural values of credibility and accountability.These tenets of our business culture led us to the Science Based Targets initiative(SBTi)while committing to reductions in greenhouse gases.In 2020,we had our 2030 targets validated through the SBTi.In January 2023,we were proud to announce our

33、 net-zero commitment for 2050,aligned to the SBTis Net-Zero Standard.We believe technology and innovation are key to a smarter future,and that we must take the most credible and collaborative path to measuring our sustainability initiatives.Our commitment to net-zero will require an immense amount o

34、f alignment and support,and this wont be possible without the innovation thats fueled by diverse perspectives and an inclusive culture.As a member of Lenovos Diversity and Inclusion Board and Executive Champion of our employee resource group for people with disabilities(A Better Lenovo for Everyone,

35、or ABLE),I am extremely proud of our employees initiatives and efforts to create and maintain our inclusive culture.In 2022,we were recognized as a top employer for disability inclusion by Disability:IN.Our Product Diversity Office has Executive letters About this report Environmental Social Governa

36、nce Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress Appendix7Lenovo Group Limited 2022/23 Environmental,Social and Governance Reportexpanded its strategy to ensure that our technology enables inclusive experiences for our customers,free of bias

37、and usable by all,regardless of background or ability.We believe in fostering inclusion at the first spark of innovation,and our intellectual property team continues our efforts to ensure diversity in innovation through measurement of patent applicants and efforts to mitigate bias in our patenting p

38、rocess.To further our inclusive efforts,in 2022 Lenovo committed to the Declaration of Amsterdam,confirming our commitment to fostering an inclusive workplace for LGBTIQ+employees.Our teams quickly engaged in this commitment,leading to Lenovos recognition for making the most progress year-on-year in

39、 the Workplace Pride Global Benchmark.We are also proud of our philanthropic efforts and their measured effect in communities around the world.Lenovos global philanthropy team has tracked 16 million direct beneficiaries since 2020,meeting and exceeding our 2025 goal to impact 15 million lives.In FY

40、2022/23 our ESG activities reached important milestones which attributed to Lenovos recognition by CDP as a leader in water security(A-ranking),for mitigation of climate change(A-ranking),and for supplier engagement(A-ranking),among other accolades.These recognitions helped Lenovo once again rise in

41、 the list of Fortunes Worlds Most Admired Companies,an annual ranking that evaluates the corporate reputations of global companies.We will continue to work toward a smarter future as a trusted and resilient global technology company with our sustainability values at our core.Laura QuatelaSenior Vice

42、 President,Chief Legal&Corporate Responsibility OfficerLenovo Group Limited8Lenovo Group Limited 2022/23 Environmental,Social and Governance Report9Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply

43、 chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress Appendix2.0Aboutthis reportAbout this reportMaterial topicsOrganizational profileAligning with the United Nations Sustainable Development Goals1011131410Lenovo Group Limited 2022/23 Environmental,Social and Gov

44、ernance ReportScope of this reportThe contents of this report apply to the Company,together with its principal Lenovo-branded and Motorola-branded subsidiaries(the“Covered Entities”),except where noted.For purposes of this report,unless the context otherwise requires,the term“the Company”also refers

45、 to the Covered Entities included in the scope of this report.Where certain topics also include other principal subsidiaries,it is noted.The scope of the Covered Entities material topics and the boundaries within their value chain are detailed in the table on page 131.The table also includes the sco

46、pe of coverage for the information that extends to subsidiaries directly or indirectly held by the Company and that are identified in the FY 2022/23 Annual Report.All disclosures and results are for the Companys FY 2022/23 unless otherwise noted.The scope of this report was determined using a financ

47、ial threshold with reference to the contributions of the subsidiaries or operations to the total revenue of the Company and its subsidiaries(the“Group”).Basis of calculationsAll financial data is denoted in US Dollars.The Company may in some instances face various challenges when measuring its perfo

48、rmance.If there are contingencies associated with the data provided,those contingencies will be noted in the documentation.Contact informationFor questions or other information about this report,please contact:Ms.Jeannie Kwong,ESG Reporting ManagerMr.Naveen Agarwal,ESG Data and Disclosures Specialis

49、t8001 Development Drive,Morrisville NC 27560Email:Lenovos operation center in Beijing,China.2.0 About this reportAbout this reportThis is the 17th annual Environmental,Social,and Governance(ESG)Report of Lenovo Group Limited1(HKD counter stock code:992/RMB counter stock code:80992)(the Company or Le

50、novo),which covers the Fiscal Year(FY)2022/23(April 1,2022 March 31,2023).This report is considered a companion document to the Companys FY 2022/23 Annual Report.The annual ESG update can be found in the Managements discussion&analysis of the Annual Report.Report contentThe content of this report is

51、 guided by the ESG Reporting Guide of The Stock Exchange of Hong Kong Limited(the Hong Kong Stock Exchange),the Global Reporting Initiative(GRI)Standards,and the needs of the Companys stakeholders.This report has been prepared with reference to the GRI 2021 Standards and in accordance to the ESG Rep

52、orting Guide of the Hong Kong Stock Exchange.The GRI content index and the Hong Kong Stock Exchanges ESG Reporting Guide content index are included in the Appendix of this report.The Company has complied with all the mandatory disclosure requirements and“comply or explain”provisions as set out in th

53、e ESG Reporting Guide of the Hong Kong Stock Exchange.External assuranceAccredited third parties have provided verification services for certain energy,greenhouse gas(GHG)emissions,waste,and water data in this report.Please see the Environmental section of this report for more details.1 As a holding

54、 company,Lenovo does not design,develop,manufacture,or distribute products or services,or control any activities of Lenovo subsidiaries in the design,development,manufacture,or distribution of products or services11Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive lett

55、ers About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixMaterial topicsThe Company recognizes the importance of a variety of informed perspectives as it develops and drives its ESG programs.T

56、hrough ongoing engagement with stakeholders,it identifies ESG-related material topics through a process that includes a range of inputs which align with the Companys significant environmental,social,and governance impacts;or that substantively influence the decisions of stakeholders.The sources of i

57、nput include but are not limited to customer surveys,benchmarking of industry trends,ESG reporting frameworks,investor outreach,the requirements under the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited,regulatory agencies,non-governmental organizations(NGOs),and

58、 various internal and external stakeholders.After the ESG-related material topics have been identified,the Company prioritizes the issues by degree of importance for Lenovos business continuity and the impact on stakeholders.This prioritization exercise is carried out using stakeholder inclusiveness

59、 and materiality principles.The information derived from this process helps set the Companys ESG goals,targets,disclosure practices and ongoing engagement with its stakeholders.The material topics identified for the FY 2022/23 reporting year are detailed in the chart below.There is no change in the

60、material topics list from the previous reporting period.The Board of Directors and the ESG Executive Oversight Committee(ESG EOC)have reviewed and approved the materiality assessment process and ensures that there is alignment with the Companys policies,business strategies,and risk priorities.Detail

61、s regarding the Companys ESG Governance and the role of the ESG EOC are included in the Governance section of this report.Environmental GHG emissions/energy use Transportation and distribution Supply chain-environmentalProduct energy use/carbon footprintProduct materials Product packaging Product en

62、d-of-life Waste from operationsWater use from operationsGovernance Ethics and integrity Cyber security and data privacyRegulatory/compliance Product qualityInnovationSocial Human rightsHealth and safetyDiversity and inclusionLabor practicesPhilanthropy/community engagementStakeholder engagementThe C

63、ompany actively manages its relationships with customers,employees,suppliers,investors,regulators,members of the communities in which it operates,and other stakeholders who may be impacted by the organizations ESG performance and whose actions can affect the organizations value.Direct and indirect s

64、takeholder engagement is conducted through regular business practices or through interactions with relevant stakeholders.12Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportStakeholderrepresentativesCommunicationmethods and channelsCommunication topicsInvestorsInvestor Relations

65、;Analysts;Shareholders;Financial Institutions;Hong Kong Exchanges and Clearing LimitedAnnual Report;Annual General Meeting(AGM);website;webcastsQuarterly and annual financial results;climate change;Diversity and Inclusion(D&I);corporate governance;ESG initiatives,goals and targetsEmployeesHuman Reso

66、urces;Talent Acquisition;Philanthropy;Social Impact subject matter expertsInternal emails;surveys;intranet;Employee Resource Groups;social mediaTraining and development;D&I;corporate governance;climate change;health and safety;community engagementCustomersSales;Customer SupportDirect interactions wi

67、th customers via meetings or written responses;customer focus groups;responses to customer-requested surveys;website;social mediaProduct energy and carbon data;corporate climate change metrics;product recycled content information;supplier due diligence informationSupply chainSuppliers;Global Supply

68、ChainSurveys and audits;Responsible Business Alliance(RBA);Global Supply Chain;website;newslettersEnvironmental performance;human rights;labor practices;distribution;health and safety;D&I;climate change;supplier trainingCommunitiesNGOs;Philanthropic organizations;Civic and communities partnerships;R

69、egulators and LegislatorsCommunity service events;surveys;emails;service campaigns;website;social mediaAccess to technology;STEM education;employee engagement;natural disastersAdvocacy groupsGlobal,national,and local alliances;NGOsTechnical working groups;webinars;newslettersSupply chain due diligen

70、ce;climate change;water management;product end of life management;circular economy;D&I;philanthropyBoard of DirectorsCompany Secretary;Lenovo Executive Committee;ESG Executive Oversight CommitteeBoard meetings and newsletters;AGMCorporate governance;ESG oversight;climate change topics;ESG risks and

71、opportunities;ethics and complianceRegulators and legislatorsGovernment agencies;Patent board;Government Afairs;LegalCompliance assessment tools;regulatory tracking services;external legal resources;newsletters;webinarsRegulatory requirements and trends;compliance requirements;data security and priv

72、acy requirements;labor practice requirementsIndustryassociationsNational or local industry associations;Certification or conformance groups;Industry councils;Standards development working groupsNewsletters;meetings;webinars;emailsPolicy recommendations;regulatory updates and standards development ac

73、tivities for energy efciency;chemicals restrictions;ecolabelsThe lists depict representative examples and are not exhaustive.13Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated m

74、etrics EMS performance,objectives and targets Long-term KPI progress AppendixOrganizational profileLenovo is a global technology powerhouse serving millions of customers every day in 180 markets.Lenovo is incorporated in Hong Kong S.A.R.,China,with key operations centers in Beijing,China,and North C

75、arolina,US.Focused on a bold vision to deliver smarter technology for all,Lenovo has built on its success as the worlds largest PC company by further expanding into key growth areas including server,storage,mobile,solutions and services.Lenovo has its shares listing on the Hong Kong Stock Exchange.L

76、enovo acquired IBMs PC Division in May 2005.In January 2011,Lenovo announced a joint venture with NEC Corporation,which resulted in the creation of the largest PC group in Japan.Lenovo has held a majority stake in Medion AG since July 2011,and in October 2014,Lenovo acquired both Motorola Mobility a

77、nd IBMs X86 servers.In November 2017,Lenovo launched a joint venture with Fujitsu Limited.In 2022,Lenovo announced a strategic partnership with PCCW Limited to form a technology solutions powerhouse,leveraging the combined strengths of both companies.Lenovo has a flexible,resilient global supply cha

78、in that was ranked#9 in Gartners Top 25 Global Supply Chains in 2022.To meet the demands of its diverse,global customer base,Lenovo has established company locations,research centers,and manufacturing around the world.180MarketsGlobal supply chain profile5M+Order linesper year2,000+Suppliers1B+Globa

79、lcustomers150M+Shipments35Globalmanufacturingsites#9Gartner 2022Supply ChainTop 25(up 7 places)$100MDigitaltransformationinvestment2023 Lenovo.All rights reserved.14Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportAligning with the United Nations Sustainable Development GoalsWi

80、th operations and supply chains that extend around the world,the Company is uniquely positioned to support the global collective impact of business by aligning its practices to a sustainable and inclusive future.Since 2009,the Company has continued its role as a signatory supporter to the United Nat

81、ions Global Compact(UNGC),a globally recognized platform that provides a blueprint for businesses that want to achieve a more sustainable future for all.As a business participant in the UNGC,the Company strives to demonstrate continuous improvements as it aligns operations and practices with the ten

82、 principles of the UNGC.The principles promote a value system that supports the fundamental responsibilities in the areas of human rights,labor,environment,and anti-corruption in the markets where the Company operates.See here for information on the Companys UNGC Communication on Progress(CoP).The C

83、ompanys ESG initiatives include activities that directly and indirectly support the United Nations Sustainable Development Goals(SDGs).This information can be found throughout the Environmental,Social and Governance sections of this report.EnvironmentalGHG emissions/energy use Transportation and dis

84、tribution Supply chain-environmentalProduct energy use/carbon footprintProduct materials Product packaging Product end-of-life Waste from operationsWater use from operations15Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Soci

85、al Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixSocialHuman rightsHealth and safetyDiversity and inclusionLabor practicesPhilanthropy/community engagementGovernanceEthics and integrity Cyber security and data privacyRegulat

86、ory/compliance Product qualityInnovation16Lenovo Group Limited 2022/23 Environmental,Social and Governance Report17Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS p

87、erformance,objectives and targets Long-term KPI progress Appendix3.0EnvironmentalEnvironmental management system(EMS)Climate changeWasteWaterEnvironmentally conscious productsPackagingProduct end-of-life management(PELM)Circular economyEnvironmental highlights18182425263537383918Lenovo Group Limited

88、 2022/23 Environmental,Social and Governance Report3.0 EnvironmentalEnvironmental management system(EMS)The Company manages the environmental elements of its operations through a global environmental management system(EMS)that covers the Companys worldwide product design,development,and manufacturin

89、g operations(including distribution,fulfillment,and internal repair operations)for computer products and devices,data center products,mobile devices,smart devices,accessories,and converged network equipment.The scope encompasses these same activities when performed by its subsidiary and/or affiliate

90、 companies.All of the Companys sites in the EMS scope are ISO 14001:2015 certified.See here to view the Companys Global ISO 14001:2015 certificates.The Company has established,implemented,and maintained an Environmental Affairs Policy which can be viewed here.Within the framework of the Companys EMS

91、,it annually conducts a Significant Environmental Aspect(SEA)evaluation process where it identifies and evaluates the aspects of its operations that have actual or potential significant impacts on the environment using a methodology that includes input from the Companys Enterprise Risk Management(ER

92、M)process.Metrics and controls are established for these significant environmental aspects.Performance relative to these metrics is tracked and reported.Performance targets are established for select environmental aspects annually with considerations including Environmental Affairs Policy,regulatory

93、 requirements,customer requirements,stakeholder input,environmental and financial impact,and management directives.During FY 2022/23,the Companys significant environmental aspects included:Product materials including use of recycled plastics and environmentally preferable materials where possible Pr

94、oduct packaging Product energy consumption and emissions Product end-of-life management Site air emissions,specifically greenhouse gas(GHG)emissions Site energy consumption Supplier environmental performance Product transportation Waste management Water managementObjective and performance targets we

95、re established for the aspects listed above.The Companys performance against these objectives and targets is available in Section 8.0.The Companys energy,GHG emissions(Scope 1 and 2),waste,and water data are externally verified to a reasonable level of assurance.The Companys GHG emissions(Scope 3)da

96、ta is externally verified to a limited level of assurance.The FY 2022/23 Verification Statements for GHG,Energy,Waste and Water can be viewed here.Climate changeThe Company recognizes that human activities are contributing to climate change and concurs with the findings of current climate science as

97、 described in the latest assessment report from the Intergovernmental Panel on Climate Change(IPCC).The Company also recognizes that if left unchecked,current trends in climate change present serious economic and societal risks and agrees that specific actions are needed to stabilize atmospheric GHG

98、 levels and hold global average temperatures to acceptable increases.The Company is working both internally and externally to help minimize and mitigate climate risks.It is committed to reducing the global carbon footprint of its business activities and has demonstrated its commitment by:Implementin

99、g a corporate Climate and Energy Policy Executing a long-term comprehensive Climate Change Strategy Setting corporate-wide objectives and targets which support the above Policy and StrategyThe Companys Chief Legal&Corporate Responsibility Officer provides executive leadership for its ESG position,in

100、cluding climate change programs.In addition,the ESG Executive Oversight Committee(EOC),chaired by the Chief Legal&Corporate Responsibility Officer,provides strategic direction and facilitates the coordination of ESG efforts across the Company,including proposing recommendations for the effective man

101、agement of ESG programs.The ESG EOC is comprised of senior management from across the business and functional areas and is chartered to promote a culture that encourages strong ESG performance,including compliance and leadership activities.Regular updates on ESG issues,including updates on topics di

102、scussed by the ESG EOC,are also provided to the Board and its Committees from the Chief Legal&Corporate Responsibility Officer.Concentrated discussion on ESG issues,including climate change,assists the Board in making the most appropriate decisions and providing oversight based on the long-term risk

103、s and opportunities that impact 19Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress Appendixits stakeholders

104、 and the business.At least annually,the Board is briefed on the Companys ESG KPIs including the Companys climate strategy and progress towards its climate change mitigation goals.N2OCO2CH4SF6NF3PFCsHFCsScope 3 Downstream Transportation and distribution Processing of sold products Use of sold product

105、s End-of-life treatment of sold products Leased assets FranchisesLenovo GHGEmissionsScope 3 Upstream Purchased goods and services Capital goods Fuel and energy related activities not included in Scope 1 and 2 Transportation and distribution Waste generated in operations Business travel Employee comm

106、uting Leased assets InvestmentsN2OCO2CH4SF6NF3PFCsHFCsScope 3 Downstream3 Transportation anddistribution Processing of sold products Use of sold products End-of-life treatment of sold products Leased assets FranchisesLenovo GHGEmissionsScope 3 Upstream3 Purchased goods and services Capital goods Fue

107、l and energy relatedactivities not included in Scope 1 and 2 Transportation and distribution Waste generated in operations Business travel Employee commuting Leased assets InvestmentsScope 1 direct emissions from operations that are owned or controlled by LenovoScope 2 indirect emissions from the ge

108、neration of purchased or acquired electricity,steam,heating or cooling consumed by LenovoNotes:Scope 3 categories in bold black are tracked and evaluated and in some cases as described in the following sections actions are being taken to drive emissions reductions.Scope 3 categories in red are not r

109、elevant to the Company.Science-based emissions reduction targets and net-zero strategyThe Company has responded to the Science Based Targets initiative(SBTi)s urgent call for corporate climate action by committing to align with 1.5C and net-zero through the Business Ambition for 1.5C campaign,an off

110、icial partner of the United Nations Framework Convention on Climate Change(UNFCCC)Race to Zero campaign.SBTi is a partnership between the UN Global Compact,CDP,World Resources Institute and World Wide Fund for Nature.The Company is an early adopter of the science-based emissions reduction approach,a

111、fter receiving SBTi approval for near-term 2030 emissions reduction targets in 2020.For near-term targets,the Companys Scope 1 and 2 emissions reduction targets are consistent with limiting warming to 1.5C,the most ambitious goal of the Paris Agreement,and its Scope 3 emissions reduction targets mee

112、t ambitious criteria according to the SBTis methodology,which means they are in line with current best practices.On January 19,2023,the Company announced its SBTi validated target to reach net-zero greenhouse gas(GHG)emissions by 2050.The Companys net-zero target is to achieve a 90 percentage reduct

113、ion across Scope 1,2,and 3 emissions.The Company was the first PC and smartphone maker and one of the first 139 companies in the world to establish a net-zero target validated by SBTi.The Companys long-term 2050 net-zero target coincides with its near-term,SBTi-validated 2030 emissions reduction tar

114、gets.By working with SBTi and aligning to their Net-Zero Standard,which is also the worlds first framework for corporate net-zero target setting,the Company is taking a scientific,collaborative,and accountable approach to reducing emissions.Aligning goals to the SBTi helps hold companies accountable

115、 for their emissions reduction.Without aligning to SBTi,it is difficult to validate or know when a net-zero target is reached.20Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportThese targets have a base year of FY 2018/19,near-term target year of FY 2029/30,and net-zero target

116、year of FY 2049/50.The following table details the Companys Science-Based Targets,road maps for their achievement,and progress against the targets in FY 2022/23.FY 2029/30TARGETSTATUS AS OF FY 2022/23BASE YEAR:FY 2018/19-50%-35%-66.5%-25%-90%ROAD MAPLENOVO EMISSIONS REDUCTION NEAR-TERM TARGETSReduce

117、 Scope 3 GHG emissions from global logistics operations by 25%per tonne-km of transported productReduce Scope 3 GHG emissions(supply chain)from procured goods and services 66.5%per million US$gross profit2Reduce Scope 3 GHG emissions(value chain)from use of sold products 35%on average for comparable

118、 products2Reduce absolute Scope 1+Scope 2 GHG emissions(related to Lenovos operations)by 50%Modal shift to lower carbon modes of transport Optimization of transport planning Increase of vehicle utilization Improvement of vehicle fuel efciencyAbove concepts continue drive energy efciency at Lenovo si

119、tes,for products,expand supplier program in commitment Inclusion of climate change requirements in Supplier Code of Conduct Supplier climate data collected annually from subset of suppliers Climate change KPIs included in supplier ESG scorecards(evaluation process)Expand supplier program to greater

120、number of suppliers/data capabilities and SBTi level of commitmentReduce product emissions through energy efciency improvements,engaging customers to use more renewable energyHierarchical combination of energy efciency,on-site renewable energy generation,and renewable energy commoditiesFY 2049/50TAR

121、GETSTATUS AS OF FY 2022/23BASE YEAR:FY 2018/19ROAD MAPLENOVO EMISSIONS REDUCTION LONG-TERM TARGETSReduce all GHG emissions by 90%-absolute reduction of Scope 1,2 and 3 emissions.Neutralize remaining 10%of emissions through carbon capture,reforestation,or other meansOn-TrackOn-Track 1On-Track 1On-Tra

122、ck 1On-Track 11 The Company is in the process of improving input data for this Scope 3 category.The status reported here is the best available estimate at the time of publication.In the FY 2023/24 ESG Report,overall supporting data and target status will reflect any improved input data.2 Updated bas

123、ed on SBTi net-zero approved target.21Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixOperational

124、energy efficiencyGiven that one of the Companys most significant environmental aspects is emissions associated with energy consumption,it has a goal to continually improve the energy efficiency of its operations.In FY 2022/23,the Companys initiatives for energy reduction included the following metho

125、ds:Energy Conservation Active Method:Installation of low-energy equipment(including LED lighting,smart lighting system,air compressor,air conditioning,and sewage treatment plant motors automation)Energy-efficiency improvement to air compressor and heating,ventilation,and air conditioning(HVAC)system

126、 Building Automation System deployment Energy Conservation Passive Method:Installation of energy-efficient windows or low-emissivity windows Adoption of energy-saving and environmentally friendly materials in new construction ISO 50001:2018 Energy Management System Various manufacturing sites,office

127、 locations in EMEA,and the Beijing headquarters location are ISO 50001:2018 certified.Energy Conservation Education Employee awareness training Energy conservation promotion(emails and tip signs)Renewable energyThe Companys renewable energy installations help to reduce Scope 2 emissions at its facil

128、ities.In June 2022,the Company enabled 500 KW of solar electric as part of its phase 1 plans at its new factory in Budapest,Hungary.In addition to the 17 MW of solar electric that are currently operational,the Company continues to investigate additional opportunities for solar installations in Brazi

129、l,Mexico,and China.Where the use of onsite renewable energy sources is not technically or economically feasible,the Company chooses to purchase Renewable Energy Credits(REC),International Renewable Energy Credits(I-REC),and Guarantees of Origin(GO).In FY 2022/23,the Company purchased renewable commo

130、dities that supported 100 percent renewable energy projects consisting of wind and/or solar power in various parts of the world including Brazil,China,India,Europe,and US.The images above are of solar panel installations at the Companys Budapest,Hungary and Wuhan,China locations.22Lenovo Group Limit

131、ed 2022/23 Environmental,Social and Governance ReportEnergyUnder the EMS,energy-related targets are set annually.Since decreased energy use or increased renewable energy use impacts emissions,these energy-related targets are related to the Companys Scope 1 and 2 emissions reduction targets and simil

132、ar actions are taken to achieve all three types of targets.For the Companys specific energy targets and its performance against them see Section 8.0.By FY 2025/26,90%of our global operations electricity will be obtained from renewable sources.33 May be accomplished through installation of onsite ren

133、ewable energy generation,entry into power purchase agreements(PPA)with power providers and/or the purchase of renewable energy credits.Energy consumption also occurs throughout the Companys value chain.Energy is used by the Companys suppliers and its supply chain is encouraged to develop energy targ

134、ets and report energy usage.Customers also use energy to power products and the Company has set targets to improve energy efficiency in many of its products.For more information,see Section 9.0 for the Companys energy-related KPIs.LogisticsThe Company shipped hundreds of millions of products to its

135、customers all over the world in FY 2022/23.The logistics that supported this accounted for roughly 3%of the Companys GHG emissions(total Scope 1,2,and 3 emissions for FY 2022/23).The Companys logistics is a major part of its global supply chain,and it is committed to reducing its Scope 3 GHG emissio

136、ns from upstream transportation.In FY 2022/23,the Companys logistics priorities included:Low carbon transport The Company is progressing a transition from air freight to road and ocean freight.In FY 2022/23,the Companys use of ocean freight in EMEA increased more than 60 percent.Roll-on/roll-off shi

137、pping replaced more than 75 percent of emergent air deliveries in the AP region.More than 97 percent of total ISG shipments are transported by road in North America and China.Low carbon fuel The Company offered its first-of-its-kind sustainable aviation fuel service to customers for a lower-carbon e

138、missions option to transport IT equipment via air freight.The Company partnered with Maersks ECO Delivery solutions for ocean freight shipments which involves using biofuel for ocean transport instead of fossil-based fuel.Beginning in January 2022,the Company took part in a pilot carbon-neutral air

139、freight program utilizing sustainable aviation fuel which is produced out of renewable waste and residue raw materials such as used cooking oils.The Company reduced emissions by 745 metric tons CO2 equivalent4(MT CO2e)with this program in FY 2022/23.For some deliveries in Chile and Mexico,the usage

140、of electric vehicles has been introduced with the aim of decarbonizing the supply chain.4 Jet-A1 Emission Factors acc.EN 16258 Annex A23Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Conso

141、lidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixUtilization and consolidation In China,a 53 ft container shipping process was set up to help boost transportation efficiency.Partnering with industry stakeholdersThe Company is actively connecting with the logistic

142、s industry,sustainable logistics initiatives,government organizations and NGOs,such as Global Logistics Emission Council(GLEC),Green Freight Asia(GFA),Smart Freight Centre China and US Environmental Protection Agency(EPA)SmartWay program.The Company uses SmartWay partners for 100 percent of its road

143、 freight in North America.The Company acts in a leading role in Smart Freight Alliance China,an organization that works with shippers to build a compliant,efficient,and sustainable China freight sector.The Company is a member of the Global Logistics Emission Council(GLEC)and uses its framework to ca

144、lculate the carbon footprint of the Companys Scope 3 transport emissions.In 2022,the Company achieved 4-Leaf Certification from Green Freight Asia(GFA)for its performance in Australia.The 4-Leaf Certification is the highest ranked label a company can obtain and demonstrates the Companys commitment t

145、o sustainability and transparency in disclosing related data.Climate change risks and opportunities and managementThe significant risks and opportunities associated with climate change are identified and evaluated as part of two main processes within the Companys business management systems.These in

146、clude its Group Risk Management and Control(GRMC)process and its annual significant environmental aspect evaluation.These two processes are connected,meaning that if climate change risks are identified in the global risk registration,they are considered in the environmental aspects analysis and vice

147、 versa.1.The Companys formal risk management process covers all areas of the Companys strategic,operational,financial,legal,regulatory and compliance risks,among which include the risk of natural catastrophes to the security of people and operational efficiencies,such as supply chain disruptions.Eac

148、h major business unit and function is required to identify risks and assess their impacts on the Companys strategy execution,then develop mitigation plans for select identified risks.This process is managed by the Companys Group Risk Management and Control(GRMC)team.24Lenovo Group Limited 2022/23 En

149、vironmental,Social and Governance Report2.Energy consumption,the associated GHG emissions,and climate change are identified as significant environmental aspects and impacts for the Company.As such,associated risks and opportunities are evaluated and prioritized annually based on its significant aspe

150、ct methodology in accordance with the requirements of the Companys EMS.Per these requirements,climate change is evaluated relative to its actual and potential influence on the environment and the business.This process is managed by the Companys Global ESG team.The results of this evaluation are cons

151、idered in the ERM process described above.The Companys climate risk assessment in FY 2022/23 also included climate scenario analysis to explore how physical and transition risks and opportunities of climate change can impact its business.Its ESG materiality assessment identifies energy and emissions

152、 as material topics that it should prioritize and focus on in its environmental programs.In support of UN Sustainable Development Goal(SDG)13 Climate Action,one of the Companys ESG pillars includes a climate action goal.More details about the Companys materiality assessment and how its goals align w

153、ith the SDGs are available on pages 11-12.For more information about the Companys identification and assessment of climate-related risks and opportunities,metrics,and actions to address climate change,please read the Companys responses to the most recent CDP Climate questionnaire.In 2022,the Company

154、 scored an A-“Leadership Level”on CDPs Climate Change questionnaire which reflects its performance toward environmental stewardship through climate change mitigation practices in its operations and supply chain.Other air emissionsThe Companys baseline environmental engineering specification prohibit

155、s the use of ozone-depleting substances in its products and manufacturing processes except in HVAC and fire-suppression equipment as permitted by law which are managed in accordance with local regulations,and intentional releases are prohibited.The Companys EMS requires the release of chemical subst

156、ances to be reported as an environmental incident,including unintentional releases.During FY 2022/23,there were no reported incidents of refrigerant releases.The Companys operational processes do not have significant(as defined by the Companys SEA process)direct air emissions such as nitrogen oxides

157、(NOx),sulfur oxides(SOx),and particulate matter(PM).In addition,the Company has no wet chemical or industrial processes that use volatile organic compounds(VOC)and thus has no point sources of VOC.Household and cleaning products that contain small quantities of VOC are used at some of its facilities

158、 but associated fugitive emissions are minimal and are not quantified.WasteThe Companys day-to-day operations around the globe generate nonhazardous waste and minimal quantities of hazardous waste.To ensure that waste is properly managed and in an attempt to minimize environmental impact,the Company

159、s waste,both nonhazardous and hazardous,are separated and collected on the site of generation and disposed of through third-party waste management companies in accordance with its Site Environmental Programs Manual and applicable legal requirements.During the FY 2022/23 reporting year,the Company co

160、ntinued to measure and monitor both nonhazardous and hazardous waste generation volumes and disposal methods through an internal environmental database.In this system,environmental focal points at its sites collect and upload monthly waste data from measured data when feasible or calculations based

161、on measured data.When no measured data is available,nonhazardous waste estimations are based on the headcount at the site and the previous years monthly data from similar sites5.5 In FY 2022/23,two offices did not report waste data due to site-specific limitations.The Companys waste data for the cur

162、rent reporting year is presented in Section 7.0.Annual Verification Statements for the Companys total nonhazardous and hazardous waste are available on the Companys website.The Companys EMS requires sites to report environmental incidents,including waste-related incidents,through the internal enviro

163、nmental database.During the FY 2022/23 reporting year,no waste-related incidents were reported.In addition to internal reporting,the Companys manufacturing facilities periodically undergo audits,some of which cover aspects of waste management.For more information on audits at the Companys facilities

164、,see Section 4.0.25Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixThe Company recognizes that was

165、te management is important throughout the value chain.The Company requires suppliers to meet the Supplier Code of Conduct and the Responsible Business Alliance(RBA)Code of Conduct through contractual stipulations,both of which include waste-related provisions.The Company uses RBA audits to verify co

166、mpliance with RBAs Code of Conduct by most suppliers by spend.For more information on these supplier activities,see Section 6.0.The Company manages downstream impacts through a Product-End-of-Life management(PELM)program.More information on the Companys PELM activities can be found in the correspond

167、ing section.Nonhazardous wasteThe Companys nonhazardous waste includes typical office and cafeteria waste as well as packaging and manufacturing scrap at manufacturing locations.Under the Companys EMS,a global nonhazardous waste recycling target is set annually.For the FY 2022/23 reporting year,the

168、target was to direct 90 percent(+/-5 percent)of the Companys nonhazardous waste to recovery operations.The results of the Companys environmental targets are available in Section 8.0.Hazardous wasteThe Companys operations generate minimal quantities of hazardous waste.Hazardous waste is waste designa

169、ted as hazardous by applicable laws or regulations in a country,state,region,or locality and may include oils,coolants,organic solvents,batteries,fluorescent light bulbs,and ballasts.Hazardous waste is required to be disposed of in accordance with local environmental regulations by approved supplier

170、s.WaterThe Company is working both internally and externally to minimize and mitigate water risks.The Company has:Implemented a corporate Water Resiliency Policy;Endorsed the UN CEO Water Mandate;and Pledged alignment with Science Based Targets Networks(SBTN)goals and vision and contributing advice

171、and end-user insights to the development of SBTN methods and tools as an SBTN Corporate Engagement Participant.In FY 2022/23,the Company grew its global philanthropic partnership with Wine To Water(WTW)to provide support and technology for use in the field.The Company sponsored employee volunteer ev

172、ents to enhance access to clean water in Nepal,Colombia,and the Dominican Republic,in addition to promoting awareness at formal events.The Company also worked with Wine To Water to respond to natural disasters by deploying water filters after floods in Pakistan and earthquakes in Syria and Trkiye.Du

173、ring the FY 2022/23 reporting year,the Company continued to measure and monitor water use and risk.In the Companys direct operations,the primary use of water is for water access,sanitation,and hygiene(WASH)services for employees,contractors,and visitors in its facilities around the globe.Because the

174、 Companys primary water use is for employees,water use varies from location to location with its largest manufacturing facilities and the sites with the largest employee headcount,withdrawing and discharging the most amount of water.The Companys water data for the current reporting year is presented

175、 in Section 7.0.Annual Verification Statements for its total water withdrawal and discharge are available on the Companys website.26Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportWater risks within the Companys operational footprint and supply chain are assessed annually usin

176、g publicly available water risk tools(World Resources Institutes Aqueduct and WWFs Water Risk Filter Tool).In 2022,the Company scored an A“Leadership Level”on CDP Water Security questionnaire,which demonstrates leadership in transparency and action on water risk.2022 Climate A-2022 Water:A-2022 Supp

177、lier Engagement:A-For more information about the Companys identification and assessment of water-related risks and opportunities,metrics,and actions,please read the Companys responses to the most recent CDP Water Security questionnaire.Environmentally conscious productsProduct materialsThe Companys

178、corporate-wide environmental standards and specifications require its product designers to consider environmentally conscious design practices to facilitate and encourage recycling and minimization of resource consumption.The Companys priority is to use environmentally preferable materials whenever

179、applicable.In adhering to this precautionary approach,it supports restricting the intentional addition of materials that are potentially concerning when economically and technically viable alternatives exist.These restrictions may also include implementing concentration limits for incidental occurre

180、nces.Approximately 99 percent of the Companys water is supplied by third parties.Approximately 99 percent of the Companys water is discharged back to third parties for treatment.The Companys EMS requires sites to characterize their discharges before entering into an agreement with a treatment facili

181、ty(exceptions may exist for typical sanitary waste),to not discharge constituents for which a treatment facility does not have treatment capability,to update characterization when a sites activities change,and to adhere,as applicable,to the discharge limits of local law,the treatment facility,and an

182、y associated permits.The Companys EMS includes an annual global water target.For the FY 2022/23 reporting year,the target was to maintain per person water withdrawal(volumes not to exceed a 5 percent increase compared to the FY 2021/22 reporting year).The target was achieved through local targets at

183、 select sites.The results of the Companys environmental targets are available in Section 8.0.The Company requires sites to report environmental incidents,including water-related incidents,through its internal environmental database.During the FY 2022/23,there were no water-related incidents.In addit

184、ion to internal reporting,the Companys manufacturing facilities undergo periodic audits some of which cover aspects of WASH and water management.For more information on audits at the Companys facilities,see Section 4.0.While the Company has minimal wet processes,it appreciates the importance of adeq

185、uate quantities of sufficient quality water to its supply chain partners with wet processes,particularly the semiconductor industry.The Company requires suppliers to adhere to the Supplier Code of Conduct and the RBA Code of Conduct through contractual stipulations,both of which include water-relate

186、d provisions.The Company uses RBA audits to verify compliance with RBAs Code of Conduct by most suppliers by spend.For more information on these supplier activities,see Section 6.0.27Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmen

187、tal Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixFor materials where economically and technically viable alternatives do not exist,the Company collects data on usage above the defined concentration limit.This data ca

188、n then be reported to customers or other stakeholders.The Company continues to actively search for environmentally preferable materials that can be used as substitutes and expects its partners and suppliers to demonstrate the same commitment to environmentally sound practices.See the Companys Materi

189、als Management webpage for more information.The Company restricts the use of environmentally sensitive materials in its products.This includes the prohibition of ozone-depleting substances in all applications;the restriction on the use of persistent organic pollutants(POPs)under the Stockholm Conven

190、tion;and the elimination of materials covered under European Union(EU)Restriction on Hazardous Substances(RoHS)and Registration,Evaluation,Authorization,and Restriction of Chemicals(REACH),even beyond the jurisdictions where these regulatory requirements exist.The Companys implementation strategy an

191、d requirements are consistent with the requirements specified in the EUs RoHS Directive and REACH Regulation.The Company supports phasing out brominated flame retardants(BFRs)and polyvinyl chloride(PVC)and is committed to driving its supply chain toward this goal.The Company continues to focus on el

192、iminating halogens from its top-selling products and across as many commodities as possible.The Company has made progress in phasing out halogens in many commodities across several product lines,among its achievements:Phasing out completely the use of BFR/chlorinated flame retardants(CFR)/PVC in all

193、 mechanical plastic parts(such as external covers,housings,etc.)across all its products Most of hard disk drives,optical disk drives,solid-state drives,LCD screens,memory,central processing units(CPUs),chipsets,and communication cards;and other commodities with offerings meet the International Elect

194、ronics Manufacturing Initiative(iNEMI)definition6 of low halogen All commercial notebooks including printed circuit boards(PCBs)meet the iNEMI definition6 of low halogen except for cables and wires,AC adapter All commercial monitors meet the iNEMI definition of low halogen except for their PCB assem

195、bly and cables.Furthermore,some monitors fully meet the iNEMI definition6 of low halogen All smartphone products are free of BFR and PVC Prohibiting the intentional addition of the following pollutants to any of its parts:Polybrominated Biphenyls(PBBs)Polybrominated Diphenyl Ethers(PBDEs)Deca-Bromin

196、ated Diphenyl Ethers6 The Company supports the definition of“low halogen”electronics as defined in the“iNEMI Position Statement on the Definition of Low-Halogen Electronics(BFR/CFR/PVC-Free)”.The Company plans to use additional BFR-and PVC-free parts and materials across the Think and Idea family of

197、 products as acceptable alternative materials become available,working toward the goal to phase out the use of these materials across all newly introduced products.The Company continues to work with its suppliers to pilot new BFR-and PVC-free applications.The Company recognizes that the phase-out of

198、 these materials is dependent upon the availability of suitable alternatives that meet its technological,cost,quality,environmental,health,and safety requirements.28Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportPLM SystemsLenovo-BB Owners,Engineers,EFPs.Export Product BOMs f

199、rom PLM SystemExternal EnvironmentalCompliance Analysis SystemSuppliersLoad BOMs into Environmental Compliance Analysis SystemLink Lenovo and Supplier parts in Environmental Compliance Analysis SystemDeclare Compliance Store Reports and ENV Sign of Reports available for designated marketSupplier loa

200、ds part data and publishes in Environmental Compliance Analysis SystemLegendBB Owners-Building Block OwnersBOM-Bill of MaterialsEFP-Environmental Focal PointPLM-Product Lifecycle ManagementREACH,RoHS.The Companys business unit environmental engineers utilize the environmental compliance analysis sys

201、tem to perform a Bill of Materials(BOM)validation to ensure every part number used in building the product has the required supplier information.Once the full BOM compliance verification is complete a detailed compliance summary report is generated to show the internal Company and external legal req

202、uirements at the full product level.In addition to the regulated materials,the Company has also identified an expanded list of materials and substances of environmental interest.These substances may be candidates for further restrictions in the future.It holds suppliers accountable for reporting the

203、 use of these materials through Supplier Material Declarations.A spreadsheet file containing the Full Material Disclosure(FMD)information,submitted via an environmental compliance analysis system,is the preferred format for confirmation of compliance to the restrictions and for reporting when substa

204、nces in question are above the specified concentration levels.29Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI pro

205、gress AppendixBig data set for materials and substancesAs of the end of FY 2022/23,the Companys Full Material Disclosures(FMD)system has accumulated an expansive data set of full material disclosure information for the business units.This information serves as a tool that can aid structural design a

206、nd optimization,analyzing materials and mechanical properties,and improving product reliability.The Company does not exempt any of its suppliers from providing FMD,though it does allow considerations for confidential information.Less than five percent of component suppliers do not provide FMD,usuall

207、y for security or intellectual property reasons.The Company will continue its efforts to support FMD and those suppliers who do not provide them are requested to ensure their components compliance with an acceptable alternate format of materials disclosure,IEC 62474 declaration,test report,or self-d

208、eclaration.The Company informs its customers about the environmental attributes of its products and compliance with applicable laws and regulations through an industry-standard IT Eco Declaration form.Declarations for newly released products are posted on the Companys ECO Declarations webpage.Consis

209、tent with its precautionary approach,the Company continuously analyzes the regulatory environment and considers input from its customers,NGOs,and other stakeholders in the evaluation of potential health and environmental impacts of its products.The Company weighs these inputs to determine the restri

210、cted substances,as well as the substances of interest to be tracked for reporting and consideration of future restrictions.Recycled materialsThe Company continues to incorporate post-industrial recycled content(PIC)plastics,post-consumer recycled content(PCC)plastics,and closed-loop post-consumer re

211、cycled content plastics(CL PCC)and to introduce new materials such as ocean bound plastics(OBP)and recycled metals into its products.These recycled materials are important to the Companys product development strategy and transition to a circular economy.Using these engineered plastics not only saves

212、 the natural resources and energy that would have gone into manufacturing new plastics,but also diverts these materials from landfills.The Companys increased use of CL PCC is helping to sustain the demand for plastic materials from IT products.Environmental benefits are achieved while still creating

213、 a product that meets the Companys high performance standards.The Company currently uses PCC in laptops,desktops,workstations,monitors,and accessories and is introducing its closed-loop process in more products each year.In 2022,the Company expanded the use of CL PCC to 298 products,up from 248 prod

214、ucts the previous year.By FY 2025/26,100%of PC products will contain post-consumer recycled content materials.77 Excludes tablets and accessoriesUsing PCC in IT products presents significant challenges due to the unique structural,performance,and cosmetic requirements associated with these applicati

215、ons.To overcome the continuing challenges of using recycled content in the design and manufacture of smart connected devices,especially notebooks,tablets,and smartphones,the Companys team of engineers works closely with its suppliers to develop and qualify new grades of plastic resins previously una

216、vailable to the IT industry.These materials receive environmental and performance qualifications before their approval and use in their product applications.For CL PCC,the Companys research and development teams work with material suppliers and a third-party certification authority to build its CL P

217、CC supplier and material process,including the“Approved Recycling Standard,”the“Quality Assurance Operation Requirements,”and the“Recovery Ratio”to validate their sources of waste and control processes using a hierarchical waste product traceability scheme.Since early 2005,the Companys cumulative to

218、tal use of recycled plastics in products has reached over 130 million kilograms(gross)containing PIC,PCC,and/or CL PCC,with net PCC of approximately 54 million kilograms and net CL PCC of more than 18 million kilograms.In 2022,the Companys use of plastics containing recycled content was approximatel

219、y seven million kilograms(gross)with a net CL PCC of approximately4.1 million kilograms.While the Company continues to introduce plastics containing recycled content to more and more products,these usage annual numbers have tended to decrease over time which reflects the Companys decreasing use of p

220、lastics overall resulting from successful efforts to make products thinner and lighter.30Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportResults of the Companys progress against its recycled content usage targets are available in Section 8.0.The Companys ESG KPIs include recyc

221、led content KPIs,for more information see Section 9.0.In addition to recycled plastics mentioned above,during the FY 2022/23 reporting year,the Company continues to incorporate ocean bound plastics(OBP)and recycled metals in its products.In an effort to reduce ocean pollution,the Company researched

222、and sourced OBP for use in some products.This year,the Company introduced OBP content in the speaker enclosures of ThinkPad L13 Gen 4 and ThinkPad L13 Yoga Gen 4,and speaker enclosures,dummy smart cards,and dummy SIM covers of the ThinkPad L14 Gen 4,and ThinkPad L15 Gen 4.Recycled metal usage also s

223、upports the transition to a more circular economy.Recycled metal usage helps reduce mining and consumption of natural resources and has potential energy and emissions savings.In FY 2022/23,the Company expanded the use of recycled aluminum and magnesium to more notebook products,including but not lim

224、ited to,75 percent recycled aluminum for the A/C covers of the ThinkPad Z13 Gen 2 and ThinkPad Z16 Gen 2,and 50 percent recycled aluminum for the A cover of the Yoga 6 Gen 7,and 90 percent recycled magnesium for the A/C/D covers of the ThinkPad X13 Yoga Gen 4.Many products contain different kinds of

225、 recycled and sustainable materials.The ThinkPad Z13 Gen 2 contains 55 percent recycled aluminum in the D cover,75 percent recycled aluminum in the A cover with an optional bio-based flax material cover,90 percent PCC plastic in the battery enclosure,speaker enclosure and AC adaptor.In 2022,the Comp

226、anys use of plastics containing OBP was approximately 10,800 kilograms(gross)with a net OBP of approximately 540 kilograms.Milestones for the Company during the past five years in recycled content usage includes:2021 Expanded the use of CL PCR to 248 products Introduced Ocean Bound Plastics in five

227、products Introduced recycled aluminum in three products and magnesium in one product2022 Expanded the use of CL PCC to 298 products Qualified 95%CL PCC,97%PCC and 98%PCC recycled plastic to support product higher post-consumer recycled content Introduced 100%recycled aluminum for tablet products2020

228、 Expanded the use of CL PCR to 103 products,up from 66 products the previous year Began using CL PCR in a server application for the first time in the Companys ThinkSystem SR9502018 Qualified new grades of CL PCR for additional resin chemistries and suppliers Expanded use of CL PCR to 21 products(ad

229、ded keyboards)2019 Expanded use of CL PCR to 66 additional products 1st Use of CL PCR in Lenovo notebook application(X1 Carbon 7th Generation)Desktop and visual models with 25%CL PCR by total product weight31Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters Abo

230、ut this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixProduct energy efficiencyProduct energy efficiency remains a core focus for the Company.To ensure that it is adhering to existing and proposed

231、 global IT product energy efficiency policies and regulations for current and future technology,the Company collaborates with original equipment manufacturers(OEMs)and industry stakeholder workgroups.The results of these efforts are leveraged to develop leading-edge products with improved operating

232、efficiencies.The Company actively manages its response to ongoing energy-related regulatory activities such as updates to emerging protocols and regulations,and industry-related standards,including:ENERGY STAR program specifications US Department of Energy(DOE)Appliance and Equipment Standards Calif

233、ornia Appliance Efficiency Program requirements China Energy Label(CEL)and China Energy Conservation Program(CECP)Standards EU Ecodesign(ErP)requirementsIn 2020,ENERGY STAR implemented a new Computer Specification version 8.0 covering desktop and all-in-one(AIO)PC products.This new specification def

234、ines energy efficiency performance metrics based on the top 25 percent of PC products available on the market with a focus on enhancements and incentives relative to full network connectivity,internal power supply(IPS)efficiency,and Energy Efficient Ethernet(EEE).To further improve product energy ef

235、ficiency for desktops,workstations,and servers,the Company certifies the energy efficiency of many of its internal power supplies through CLEAResult Plug Load Solutions 80 Plus program.This external certification establishes requirements for internal power supplies through independent testing and ve

236、rification of the programs rated efficiency criteria,such as Bronze,Silver,Gold,Platinum,and Titanium.Certified systems with internal power supplies(desktops,workstations,and server products)with this certification are significantly more energy-efficient than other systems equipped with typical powe

237、r supplies.The Companys servers also utilize 80+Titanium Power Supply Units(PSUs),Central Processing Units(CPUs)P-state cooperative(voltage/frequency)control,CPU Voltage Regulator Device(VRD)auto-tuning and have transitioned to newer VRD technology with lower losses to enhance and maximize energy ef

238、ficiency.By FY 2029/30,we will achieve 30%improvement in energy efficiency of Lenovo notebooks 8 and Motorola products.9By FY 2029/30,we will achieve 50%improvement in energy efficiency of Lenovo desktops 8 and servers.88 Energy efficiency improvement on average for comparable products relative to F

239、Y 2018/199 Energy efficiency improvement on average for comparable products relative to FY 2020/21Through its product development process,the Company requires its products to meet energy efficiency and performance requirements in various markets,including but not limited to US,China,Japan,and Europe

240、.Many of the Companys notebooks,desktops,servers,and monitors meet and often exceed the current ENERGY STAR requirements.In 2022,five Company monitors were recognized as“ENERGY STAR Most Efficient.”The ENERGY STAR Most Efficient list highlights products utilizing the latest in technological innovati

241、on to deliver cutting edge efficiency and represents the very best for energy savings and environmental protection.The Companys ENERGY STAR qualified models are listed on the ENERGY STAR website.For more information about the Companys energy-efficient products,see its Product Energy Efficiency webpa

242、ge.In support of the Companys commitment to lower GHG emissions,science-based targets were established to reduce emissions associated with the use of sold products per comparable products(for notebooks,desktops,and servers).Product Development Teams are actively investigating and implementing techni

243、cal enhancements to support power efficiency improvements and track annual performance against the prescribed targets.32Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportProduct energy management featuresThe Company offers innovative tools that allow better control of PC and ser

244、ver power consumption,calculate energy savings,and report on the management of energy performance,IT equipment,and devices.PC tool BenefitLenovo Settings(Windows)An application that provides power management features,such as Connected Standby for the user.Adaptive Thermal ManagementAdjusts system po

245、wer and fan speeds based on ambient levels.Active Directory and LANDeskSupports remote deployment of power schemes and global settings to allow administrators the ability to control and enforce ThinkPad energy savings company-wide.EasyResumeProvides quick recovery from computer lid close,balancing l

246、ow power state by suppressing CPU usage at lid close.Intelligent CoolingBalances thermal performance to adjust settings to provide a cooler surface for comfort while optimizing product energy.Energy Saving Power Supply Unit(PSU)The PSU turns off the internal fan when the system detects the power loa

247、d is low and saves energy consumption.Smart Power(Monitors)A power and energy management feature that dynamically detects and optimizes the distribution of power.Example:If there are multiple devices plugged into a monitor like a smartphone,a laptop,or other USB-powered peripheral the monitor will g

248、auge how much power each of them needs and adjust according to the requirement.Durability and repairabilityKeeping a product in use for longer is an important aspect of circular economy and reducing climate impact.The Company designs its products to maximize its product lifecycle by focusing on dura

249、bility and repairability.To help keep products in use,the Company offers three-year standard warranties and five years of replacement parts availability on many of itstop-selling commercial products.Three-year warranties are offered as the base warranty on many top-selling Think branded products,inc

250、luding monitors,notebooks,desktops,and others.In addition,customers can purchase warranty upgrades to extend the base warranty by one or two years for many products.Base warranties for consumer products vary by product type and geography but typically start at one to two years for the base warranty

251、with the option for customers to purchase an extended warranty for many products.In addition to the warranty offerings,the Company makes available service and maintenance manuals for many products along with parts removal and replacement videos.Customers can source spare parts from the Company or it

252、s authorized partners.The Companys serviceability engineers are focused on minimizing the interruption to customers during repair and maintenance and consider the products eligibility for onsite repair as an indicator for ease of repair.33Lenovo Group Limited 2022/23 Environmental,Social and Governa

253、nce ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixFor more details,see the Companys Warranty and Maintenance Services webpage.The Companys ESG KPIs include a rep

254、airability KPI,for more information see Section 9.0.The Company is continuously designing innovative features for its products to help extend their useful life.For example,its battery technology extends notebook battery cycle life through key technologies,including:Increased use of lithium polymer c

255、ells:Used in notebooks and tablets with embedded batteries,these cells typically provide longer life cycles than lithium-ion cylindrical cells.Longer lifespan batteries:Many of the Companys embedded batteries are designed to last two to three times longer than standard batteries.It offers three-year

256、 warranty upgrades on many embedded batteries.The longer lifespan is made possible with carefully selected cells and charge algorithms.In July 2021,the Company began working with a battery manufacturer to develop a mobile battery with a longer life of 1,200 cycles(up from 800 cycles).Product carbon

257、footprintThe Product Carbon Footprint(PCF)or Global Warming Potential(GWP-100)has become a key product attribute for the Company and customers.Knowing the PCF of a product allows customers to better understand the environmental impact of the products they purchase.To provide the Companys customers w

258、ith PCF values for the broadest set of products,the Company continues to utilize the Product Attribute to Impact Algorithm(PAIA)platform to calculate streamline life cycle assessments of desktops,notebooks,tablets,and workstation computers as well as monitors,servers,storage,and network switch produ

259、cts.With a suite of simplified online tools,PAIA delivered a methodology for information and communications technology(ICT)product footprints which originated from a multi-stakeholder initiative of ICT companies that shared insights and best practices.The Companys participation in PAIA is helping to

260、 drive a sector-wide streamlined methodology that will be key to transforming ICT companies into sustainable businesses.Using PAIA tools to calculate product footprints has significantly reduced the time and cost of calculating environmental footprints for its products.The quality and accuracy of th

261、e calculations allow the Company to confidently communicate this information with customers and other stakeholders.The Company shares these results with enterprise customers and publishes them publicly as PCF information sheets.PCF sheets for specific products can be found on the Companys ECO Declar

262、ations webpage.The Companys product life cycle assessment(LCA)system is based on the ICT industry eco-design requirements that analyzes the products full life cycle and design process to help provide products with less environmental impact to the market.Its product LCA system utilizes the ICT produc

263、t footprint tool which assesses the core product design and manufacturing plan by using a scientific and quantitative configuration that supports improvement initiatives.In addition to products,the Company is working to expand this exercise to include materials and technologies.In 2022,the Company c

264、onducted eight LCAs for notebooks,displays,recycled plastic,recycled metal,and other technologies.The notebook and display products for which LCAs were conducted are the ThinkPad T14 Gen3 notebook and P27q-30 display.While there are other voluntary standards available to guide practitioners in compi

265、ling PCF,these standards are not designed to establish comparative values between products.The degree of flexibility written into the standards can produce variations in results for the same products when the same standard is applied by different practitioners.Compiling PCF using these standards is

266、also a very lengthy and resource-intensive process.Other commonly used standards include the British Standards Institutes PAS 2050,WRI/WBCSDs GHG Protocol Product Lifecycle Accounting and Reporting Standard,ISO 14040,ISO 14044 Life Cycle Assessment(LCA),and ISO 14067 Carbon Footprint of Products.34L

267、enovo Group Limited 2022/23 Environmental,Social and Governance ReportEcolabels from around the globeThe Company pursues ecolabels for many of its products.Selected products have achieved one or more of the following ecolabels:35Lenovo Group Limited 2022/23 Environmental,Social and Governance Report

268、Executive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixIn its operations,the Company uses reusable bulk packaging for the transportation of chassis to manufacturing locations.L

269、eading the way in innovative packagingAt the Company,packaging isnt just a way to get finished devices from the manufacturing facility safely into the customers hands.It is an opportunity for the innovative packaging engineers and designers to consider innovations that could help reduce the environm

270、ental impact of packaging and logistics.Bamboo fiber gift boxThe Company began using bamboo fiber in 2012 as packaging cushions.In 2022,a brand-new bamboo gift box was introduced to ThinkPad X1 and Z series.It is made from 100 percent renewable bamboo fiber and the box weight is effectively reduced

271、by 30 percent compared to the previous gift box.ThinkPad Z13 with bamboo gift boxAll PC boxes contain at least 70 percent old corrugated containers11(OCC)recycled content.11 OCC contains both PCC and PIC contentsPackagingPackaging has been identified as a significant environmental aspect under the C

272、ompanys EMS.Its packaging priorities focus on reducing its packaging consumption,waste,and carbon emissions levels by:Increasing the use of recycled and renewable materials in packaging Increasing the use of bio-based materials Reducing the size of product packaging Expanding the use of bulk and reu

273、sable packaging solutionsIn FY 2022/23,the Companys packaging objective was to minimize the consumption of packaging material while driving the use of environmentally sustainable materials.The Company is intent on reducing the size of its packaging to minimize the materials used while maintaining ad

274、equate protection for its products.The Company supports the above objective with a target to transition packaging to recycled materials or renewable materials,especially the plant-based bamboo or sugar cane fibers.The use of bamboo or sugar cane fibers in select products marked the launch of a new e

275、ra of eco-friendly packaging offerings for the Company,while also enhancing customer experience.Bamboo fiber has many favorable features,including:Sleek and robust design Lightweight 100 percent rapidly renewableThe Companys packaging program requires all corrugated container packaging supplied to b

276、e a minimum of 70 percent post-consumer fiber content and requires suppliers to use the maximum available PCC where adequate supplies exist without compromising required packaging performance characteristics,while the printing on boxes is done via flexography with water-based,non-toxic,RoHS-complian

277、t inks.In addition,the Companys packaging program requires the use of Forest Stewardship Council(FSC)certified fibers in liners for all ThinkPad products and select consumer notebooks when virgin fibers are used.Since 2008,the Company has eliminated10 4,137 metric tons of packaging consumption by we

278、ight.In FY 2022/23 alone,the packaging team reduced10 packaging consumption by 400 metric tons.10 These numbers reflect packaging innovations that resulted in reduced packaging weight for individual products.See Section 7.0 for additional metrics about total packaging use by year.36Lenovo Group Limi

279、ted 2022/23 Environmental,Social and Governance ReportPlastic-free packagingThe Company aims to eliminate plastic materials from product packaging.The ThinkPad X1 and Z series packaging are pioneers towards this ultimate target.By combining bamboo fiber technology with other innovative materials,the

280、 packaging team has accomplished plastic-free packaging on ThinkPad X1 and Z series.As a result,the Company eliminated 192 metric tons of plastic in packaging.ThinkPad Z13 with plastic-free packagingOcean bound plasticPlastic pollution has negatively affected the oceans ecosystems and the marine ani

281、mals who reside there.In 2019,the packaging team began researching the possibility of using ocean bound plastic(OBP)in product packaging.Based on repeated test results,the packaging team determined a mix of 30 percent OBP with 70 percent other recycled plastic had the best performance.The Company la

282、unched the first packaging cushion containing OBP(30 percent OBP and 70 percent other recycled plastics)in ThinkPad L14 packaging.In FY 2022/23,the Company expanded the use of OBP to new ThinkPad L series,select desktop/AIO and consumer notebooks as packaging cushions or system bags.Through these ap

283、plications,the Company estimated it will use 130 to 140 metric tons of ocean bound plastic per year.ThinkCentre Neo 30a Gen3 with 30%OBP bag37Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain

284、 Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixResults of the Companys progress against its packaging targets are available in Section 8.0.The Companys ESG KPIs include packaging KPIs,for more information see Section 9.0.Product end-of-life management(PEL

285、M)The Companys Product End-of-Life Management(PELM)program is an important part of its efforts to support a transition to a circular economy,as it supports the reuse and recycling of products and parts.The PELM program also supports the elimination of end-of-life electronic products being disposed o

286、f in landfills and includes the practice of reuse,refurbishing,de-manufacturing,dismantling,reclamation,shredding,recycling,treatment,and disposal of products,parts,and peripherals when they are taken out of service,reach end-of-life,or are scrapped.This program covers Company-branded and non-brande

287、d products owned by the Company or accepted from customers and others(including customer returns or take back).The Company has made available the Electronics End of Life Standard for suppliers with details about the Companys PELM supplier requirements and the industry-standard certifications it prom

288、otes.Product take-back programsAs a global business,the Company offers end-of-life recycling and management programs for both consumer and business customers in many major markets.These product take-back programs(PTB)are tailored to the specific location and business needs and include programs for r

289、ecycling products as well as packaging and batteries in many geographies.Customers can obtain information about the Companys recycling programs on its Recycling webpage.For its business and enterprise customers,the Company offers Asset Recovery Services(ARS)globally to manage the disposition of IT a

290、ssets and data center infrastructure.Customers can access information about the Companys global ARS program at its Asset Recovery Services webpage.Product and parts managementThe Company strives to maximize the value and potential reuse of excess,returned,and obsolete products and parts across its b

291、usiness and manufacturing operations,repair network,and channel partners.Through reverse supply chains,these products and parts are kept in circulation as-is or after refurbishing and the Company can potentially avoid having to manufacture new products and parts.Management of PELM suppliersThe Compa

292、ny maintains a program to help ensure that recycling,disposal,and disposition of end-of-life products owned by the Company or returned by customers is accomplished in an environmentally conscious and legally compliant manner.This program includes:Supplier completion of the Companys initial supplier

293、audit or evaluation form declaring their processing capabilities and controls,management systems for quality,environmental,health and safety,legal compliance,downstream facilities disclosures,and evaluation criteria,The Companys environmental audit or evaluation of facilities and suppliers processes

294、 prior to use with documentation of audit findings and recommendations in a final report,Review of all audit or evaluation documentation and recommendations by its Geographic Environmental Focal Points and final approval by the Companys Director of Environmental,Sustainability,and Compliance,Databas

295、e of all the Companys audited and approved PELM supplier facilities by geography with approved services for use by all the Company organizations,sites,and programs worldwide,The Companys supplier contracts with specific environmental terms and conditions related to expected environmental performance

296、 and reporting,Suppliers in scope include ARS suppliers,legal and voluntary product take-back providers,dismantlers,recyclers,refurbishers,disposal,and other related vendors.The Companys Electronics End of Life Standard for Suppliers sets guidelines that all recovered products and parts to be data w

297、iped,refurbished,tested for function,labeled as refurbished,and resold where they will be used as originally intended without further refurbishing before use.The standard also requires suppliers to use Company-approved recyclers for the disposition of non-working products and parts and waste generat

298、ed from their refurbishing processes and prohibits the shipment of hazardous waste to non-Organization for Economic Cooperation and Development(OECD)countries.38Lenovo Group Limited 2022/23 Environmental,Social and Governance ReportDuring the design phase,important decisions are made that can help i

299、mprove circularity and the Company is continuously evaluating design decisions that can help reduce environmental impact.The use of recycled and sustainable materials is an important aspect of the circular economy on which the Company focuses.New recycled materials are being researched and introduce

300、d into products.By FY 2025/26,the Company plans to include PCC plastic in 100 percent of its notebook computers,desktop computers,workstation computers and monitors.Since last fiscal year,the Company has expanded the types of components that contain CL PCC and PCC plastics as well as increased the u

301、sage of recycled aluminum,magnesium,and ocean bound plastic.Since 2008,the Company has used recycled plastic in products and is on track to meet its target of using over 136 million kilograms of PCC plastic by FY 2025/26.The Companys circular design decisions extend to its packaging as well.The Comp

302、any is increasing its use of recycled fiber,recycled plastic and sustainable materials in packaging including bamboo,sugarcane and sustainably forested fiber.The Company has a goal that by FY 2025/26,90 percent of plastic packaging will be made from recycled plastics for notebook computers,desktop c

303、omputers and workstation computers.The Company has additional goals for smartphone product packaging,60 percent of the materials will be recycled content and single use plastics will be reduced by 50 percent by FY 2025/26.The Company can help advance a circular economy by optimizing the use of its p

304、roducts and parts.Improving the energy efficiency of the Companys notebook computers,desktop computers,servers and smartphones is the Companys goal.To extend the life of its products,the Company offers support and service options as well as other managed services.The Company has a goal that by FY 20

305、25/26,84 percent of repairs can be done at the customer site,without having to send their PC to a service center.The Company is keeping repairable parts in use longer and has a goal that by FY 2025/26,at least 76 percent of repairable parts will be repaired for future use.The Company offers enterpri

306、se customers second life data center products through its Lenovo Value Recovery business.Recovery and recycling trendsAs customers continue to have considerable interest in the Companys recycling programs,its continual improvement activities include searching for opportunities to maximize reuse and

307、recycling.Results of the Companys progress against its PELM targets are available in Section 8.0.The Companys ESG KPIs include recycling or reuse KPIs,for more information see Section 9.0.Circular economyWith a vision for a net-zero future,the Company knows the transition to a circular economy is cr

308、itical.Collaboration and credibility are important to the Company during its net-zero journey and advancing a circular economy.To help scale circular economy solutions in the IT industry,the Company joined the Circular Electronics Partnership to collaborate with the technology industry,suppliers,and

309、 stakeholders.The Companys vision to deliver smarter technology for all extends to its circular economy practices that include Smarter Circular Design,Smarter Circular Use,and Smarter Circular Return activities.Design Use ReturnCircularEconomy39Lenovo Group Limited 2022/23 Environmental,Social and G

310、overnance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixWith this innovative technology,the Company committed to creating a data pool for finless porpoise protec

311、tion,which will not only help improve the efficiency of the Reserve,but also provide reference for scientific research on finless porpoise protection to help formulate better government policies for the protection of the species.Currently,Chinas Ministry of Agriculture and Rural Affairs is able to m

312、easure the finless porpoises population every five years.The project later led to an exhibition and a four-episode documentary series called“Song of the River,”in partnership with the Chinese National Geography Channel and Shanghai Natural History Museum.The exhibit highlighted four endangered anima

313、ls of the Yangtze River:the finless porpoise,bar-headed goose,black-and-white snub-nosed monkey,and raccoon dog native to Asia.The first-of-its-kind initiative for the Company included an interactive sound recording experience of the rivers ecosystem,videos,photos,and the“Song of the River”themed do

314、cumentary series on the Chinese National Geography Channel.The Company is committed to exploring ways that innovative technology can be used to help understand,celebrate,and protect biodiversity in the Yangtze River and beyond.While the Company continues to expand its use of CL PCC from IT equipment

315、,the circular return of IT products into the recycling systems and supply chain is essential.The Company offers consumers and commercial customers product return programs to keep the products and materials in circulation.Commercial customers need reliable and secure solutions to manage their technol

316、ogy at the end of life.The Companys Asset Recovery Services maximizes value of IT and enterprise hardware.The Company also offers consumer recycling programs in major markets.Since 2008,the Company has enabled the recycling and reuse of IT equipment and is on track to meet its target of more than 36

317、2 million kilograms of IT products recycled and reused by FY 2025/26.The Companys ESG KPIs include KPIs that support a circular economy,for more information see Section 9.0.Environmental highlightsSong of the RiverIn 2022,the Company began a project to use its smarter technology to help enhance biod

318、iversity.The Companys efforts initially focused on the Yangtze River Finless Porpoise,a species whose name is derived from its home in Asias longest river,the Yangtze River.The finless porpoise has been classified as“critically endangered”by the World Wildlife Foundation with a remaining population

319、of only about 1,000-1,800.After meeting with the Tianezhou Baiji Dolphin Nature Reserve(the Reserve),the Company recognized that while the Reserve housed more than 100 finless porpoises,it did not have the technology resources to monitor and store the populations activity data.The data is critical t

320、o the Reserves efforts to learn from and protect the species from endangerment.In response to this need,the Company launched an intelligent solution to provide stronger data measurement and storage for the Reserve.The effort included extending the data storage time from one month to one year,develop

321、ing a data management platform,and unifying the electronic and written data originally scattered in various places to one platform for management.The Company also provided a smart screen for the conservation team to better visualize the data provided.40Lenovo Group Limited 2022/23 Environmental,Soci

322、al and Governance ReportSetting the standard for sustainability in ChinaFY 2022/23 brought numerous steps forward for the Companys pursuit of sustainable manufacturing initiatives.In 2022,the Company was proud to be part of the standardization for low carbon manufacturing in China,serving as an indu

323、stry representative to test and establish the group standard for the China Electronics Standardization Institute(CESI).The Company was able to help lead the industry toward sustainability by contributing to the drafting and formulation of the first zero-carbon factory standard for the ICT industry,l

324、aunched in September 2022.Known as the“General Specification for the Evaluation of Zero-carbon Factories,”the standard evaluates various aspects of manufacturing emissions.In December 2022,the Companys Wuhan location achieved the distinction of being the first factory in Chinas ICT industry to be re

325、cognized for its sustainability goals by CESI under the new standard.Efforts were further recognized when in January 2023,the World Economic Forum included the Companys Hefei factory as a“lighthouse factory,”a community of manufacturers showing leadership in using Fourth Industrial Revolution techno

326、logies to help transform factories,value chains and business models.Climate action in ChinaIn the past year,the Company has demonstrated strong leadership around the world in its approach to ESG.As a global technology company with Chinese heritage and presence,the Company recognizes its opportunity

327、to lead and influence sustainable industry transformation in China and beyond.Below are examples of the Companys efforts to standardize and set a benchmark for sustainability practices in China.Embracing carbon neutrality on the journey to net-zeroIn 2022,the Company released the“2022 Carbon Neutral

328、ity Action Report of the Lenovo Group.”In the report the Company shared its emissions reduction strategy through a four-part framework:proactively developing a dual-carbon strategy to mitigate emissions;adopting the Task Force on Climate-Related Financial Disclosures(TCFD)framework to improve standa

329、rdization of emissions information disclosure;sharing a comprehensive action plan for the journey to net-zero that integrates the Company,its suppliers,its employees,and the environment;and innovations that are enabling the Companys vision for a smarter,more sustainable future.In addition to the Car

330、bon Neutrality Action Report,the Company took additional steps to measure and help neutralize emissions in its operations.First,the Company achieved a carbon neutral status for its Beijing headquarters office building.The achievement was made in alignment with the China Energy Conservation Associati

331、ons“Zero Carbon Civil Building Evaluation Standard”launched in December 2022.As part of this effort,the Company created a total carbon neutrality solution for the green buildings sector and received certification for the carbon neutral building from the Beijing Green Exchange.41Lenovo Group Limited

332、2022/23 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixFinally,the factorys location in Europe is helping to decrease emission

333、s.With the capacity to build 5,000 devices for local use,freight miles are reduced for products to be shipped to customers,resulting in reduced emissions and working to provide faster delivery of products to customers.In 2022,the Company expanded added initiatives that can help reduce emissions from global logistics.The Company initially began a partnership with DB Schenker and Lufthansa,increasin