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1、Lenovo Group Limited2023/24 Environmental,Social and Governance ReportHKD COUNTER STOCK CODE 992RMB COUNTER STOCK CODE 80992Table of contents1.0 Executive letters2A letter from the Chairman and CEO4A letter from our Chief Legal&Corporate Responsibility Officer62.0 About this report8About this report

2、10Organizational profile11Material topics12Aligning with the United Nations Sustainable Development Goals143.0 Environmental16Environmental management system(EMS)18Climate change19Waste25Water26Environmentally conscious products27Packaging37Product end-of-life management(PELM)39Circular economy40Bio

3、diversity 414.0 Social42Labor practices44Health and safety45Diversity and inclusion(D&I)51Employment and talent management practices57Global philanthropy and community engagement645.0 Governance68ESG governance70Business practices73Product quality management79Innovation81Governance highlights836.0 G

4、lobal supply chain86Supply chain ESG practices88Supplier diversity1017.0 Consolidated metrics102FY 2023/24 consolidated metrics1048.0 EMS performance,objectives,and targets116FY 2023/24 EMS performance,objectives,and targets1189.0 Long-term KPI progress126Long-term ESG key performance indicators(KPI

5、)12810.0 Appendix132FY 2023/24 memberships and associations134Scope of the report135Gender equity supplementary information136GRI content index138The Hong Kong Stock Exchanges ESG Reporting Guide content index1431.0Executive lettersA letter from the Chairman and CEOA letter from our Chief Legal&Corp

6、orate Responsibility Officer4 64Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportI am pleased to introduce our FY 2023/24 Environmental,Social and Governance(ESG)report.This is the 18th consecutive year we have published such a report,demonstrating our commitment,persistence,an

7、d ongoing progress in these areas.Clearly,the past year presented our world with numerous challenges,but it also brought us unprecedented opportunities in artificial intelligence(AI).It is clear that AI will be a major priority and influence in our business for years to come.We are committed to acce

8、lerating the deployment of AI for businesses around the world through AI-enabled,AI-optimized,and AI-ready devices,infrastructure,solutions,and services.Even more,we recognize our duty to leverage this technology to improve the lives of people around the world while minimizing its impact on the plan

9、et.This recognition led to our Smarter AI for All vision.In this report,I would like to share with you how Lenovo continues to drive ESG forward in the AI era.AI for environmental sustainabilityWere proud to be on-track for our 2030 emissions reductions goals,after announcing our commitment to reach

10、 net-zero emissions by 2050 in alignment to the Science Based Targets initiatives Net-Zero Standard.Fueled by our own commitments and services-led transformation,we continue to meet our customers wherever they are on their ESG journey with our sustainability services.In 2023,Lenovo announced the new

11、 reduced carbon transport service for global logistics,as well as L.I.S.S.A.,an AI-powered consultant that can help customers optimize their IT solutions in support of their sustainability goals.Lenovos transformation from a device company into a solution provider is fueling us into a global technol

12、ogy powerhouse.Our sustainability solutions and services offer customers the ability to extend the use of their devices,manage and measure their IT fleets carbon footprint,contribute to the circular economy,and even have their equipment shipped more sustainably.While we enhance our customers sustain

13、ability strategies with Lenovo services,we are also proud to be recognized as a Climate+TM Champion by EPEAT,the premier global ecolabel for electronics and technology products.More than 400 Lenovo products have been designated with Climate+,which highlights their thoughtful production with climate

14、in mind.A letter from the Chairman and CEOExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress Appendix5Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportInclusi

15、ve AIWe see tremendous opportunity that AI can lead to a more inclusive future.Few examples highlight this better than my interactions with Gabriel,a gentleman from Brazil who communicates through Libras(Brazilian sign language).An AI solution not only helped me communicate with Gabriel but also all

16、owed him to introduce me to our 2023 Tech World audience.This solution is a breakthrough for the 2.3 million people in Brazil who are deaf or hard of hearing and use Libras to communicate,and a signal of the inclusion that Lenovos technology can power.As AI is adopted for various solutions,it cannot

17、 offer the best solutions without inclusive data sets.Lenovo is proud to support the work of Cercle InterL and the Women&AI Charter for accountable and gender fair AI.Responsible and ethical AILenovo is shaping our AI integrations with a strong governance model the Responsible AI governance framewor

18、k that covers ethical,legal,safety,privacy and accountability concerns of AI.The framework is executed by a committee that focuses on the following principles:diversity and inclusion,privacy and security,accountability and reliability,explainability,transparency,and environmental and social impact.I

19、n February 2024,we committed to UNESCOs Recommendation on the Ethics of Artificial Intelligence to build an ethical and responsible AI.This standard and our commitment to it further acknowledges the intersection of AI and the sustainable development goals.As a member of the United Nations Global Com

20、pact,we will readily adopt collaborative governance frameworks that protect the potential and role of AI in global development.Milestones on our journeyThe following recognitions have been received by Lenovo in the past year,including:Lenovos Morgan Stanley Capital International(MSCI)ranking was mai

21、ntained at AAA status,the highest possible score for corporationsleading in ESG programs.The Hang Seng Corporate Sustainability Index awarded Lenovo the strongest score in the IT Industry for Environmental and Social Achievements and an AA score overall.Hong Kong Institute of Certified Public Accoun

22、tants(HKICPA)Gold Award in Most Sustainable Companies and Organizations section of the Best Corporate Governance and ESG Award,making 2023 the eleventh year that Lenovo has been recognized by HKICPA for its corporate citizenship.Lenovo was ranked number eight in Gartners 2023 Global Top 25 Supply Ch

23、ain ranking,at the same time ranking number one in the Gartner Asia Pacific Supply Chain for the second year running.As we continue our journey,it is more important than ever to maintain our thoughtful,measurable,and credible approach to our ESG programs.The world has changed a lot since our first s

24、ustainability report in FY 2008/09,but I am proud of our continued commitment to reporting our progress.Despite constant change and times of uncertainty,we will lead with persistence and resilience,push toward our stated goals,and work toward a more sustainable future for all.Yuanqing YangChairman a

25、nd Chief Executive OfficerLenovo Group Limited6Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportA letter from ourChief Legal&Corporate Responsibility OfficerAs Senior Vice President and Chief Legal&Corporate Responsibility Officer,it is a pleasure to share our 18th annual Envir

26、onmental,Social,and Governance(ESG)Report for FY 2023/24.I write this letter with the knowledge that our world is at a critical juncture across all elements of ESG.This past year was measured as the hottest year on Earth in recorded history,economic uncertainty and division remains for many around t

27、he world,and artificial intelligence has proven itself as a powerful tool that must be used thoughtfully.Its more important than ever to take action credibly,collaboratively,and with full accountability.With these values in mind,Lenovo was proud to fortify our participation as a member of the United

28、 Nations Global Compact by joining the Forward Faster initiative in 2023.Through this initiative,Lenovo has committed to accelerating impact for the UN Sustainable Development Goals as they relate to climate action and water resilience.After announcing the validation of our net-zero targets by the S

29、cience Based Targets initiative in January 2023,joining the Forward Faster initiative further demonstrates our commitment to credible action through collaboration with others who are serious about mitigating climate change and conserving our planets resources.While we are on track to meet our near-t

30、erm 2030 emissions reduction goals the first milestone in our journey to net-zero by 2050 we know that innovation is perhaps the most critical strength for our journey.Our people are core to our ability to innovate and its important that our teams are composed of diverse perspectives to ensure were

31、getting the best ideas from a wide range of viewpoints.Workforce diversity not only supports stronger solutions to problems,but it helps us better meet the needs of our diverse,global customer base.To better understand the diversity of our employee base,we launched a Self-ID Campaign in 2023.The Sel

32、f-ID Campaign gives employees the opportunity to voluntarily provide information on their gender identity,disability status,and racial or ethnic background.With alignment from local leadership,it has rolled out in the US,the European Union,and Executive letters About this report Environmental Social

33、 Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress Appendix7Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportDisability Inclusion by the Disability:IN,maintained our placement on the Human Rights Campaigns Corporat

34、e Equality Index for LGBTQ+inclusion,and received our highest score to date on Workplace Prides Global Benchmark Score.Our customers and partners are recognizing our efforts,as Lenovo was honored with the Canalys Sustainability Champion Award in 2023.We know that these accolades are the result of st

35、rong governance that we will persistently reinforce through our policies,decisions,behaviors,and the workplace culture they create.As a global technology company,we continue to navigate new challenges.However,we know that our persistent commitments to collaboration,credibility,and accountability wil

36、l continue to power us forward on our sustainability journey.Laura QuatelaSenior Vice President,Chief Legal&Corporate Responsibility OfficerLenovo Group Limitedthe United Kingdom.We look forward to extending it to key markets in the Asia Pacific region in the months to come.This campaign and the agg

37、regate workforce data it provides is critical to ensuring the safety and well-being of employees by increasing awareness of external dynamics and helping to support the development of stronger internal policies.It also provides insights for our employee resource groups,as they work to foster a sense

38、 of belonging in our workforce across seven diversity segments,many intersections,and many interest groups.Our Product Diversity Office can also leverage this data for awareness of internal stakeholders as they review new products and solutions and ensure our smarter technology is truly for all.Leno

39、vo is an industry leader in the inclusion of women in the workforce and representation of women in our technical teams.We remain focused on our executive representation goals for FY 2025/26,working to reach 27%female executive representation around the world and 35%representation of executives from

40、historically excluded backgrounds in the US.To bolster this work,weve focused on our diverse talent pipeline.We continue to see success from our Womens Leadership Development Program(for Director-level women around the world)and Mosaic Leadership Development Program(for Directors from historically e

41、xcluded backgrounds in the US).Recently Lenovo has added the Courageous Leadership Development Program to better retain and grow managers who are from historically excluded backgrounds in the US and not yet at the Director level.In FY 2023/24,we were proud to receive the highest-ever engagement scor

42、e on our Annual Lenovo Listens employee survey.We see this reflected in our employees energy for our global philanthropy efforts.In 2023,employees grew our grassroots-driven Love on Month of Service for the seventh consecutive year,tracking more hours volunteered than ever before.Employees in Colomb

43、ia,Brazil,the US and India gave back with our charitable partner Wine To Water to help provide access to clean water for local communities.Additionally,employees engaged with our Work for Humankind initiative in India,helping rural farmers in the Kanthaloor state revitalize cultivation of the ancien

44、t millet grain.As we continue our sustainability journey,we are proud of recognitions that signal progress.In the past year we were proud to be recognized as one of Fortune Magazines Most Admired Companies.We were also named a Best Place to Work for 8Lenovo Group Limited 2023/24 Environmental,Social

45、 and Governance Report9Lenovo Group Limited 2023/24 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 Appendix2.0Aboutthis reportAbout th

46、is reportOrganizational profileMaterial topicsAligning with the United Nations Sustainable Development Goals1011121410Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExternal assuranceAccredited third parties have provided verification services for certain energy,greenhouse ga

47、s(GHG)emissions,waste,and water data in this report.Please see the Environmental section of this report for more details.Scope of this reportFor purposes of this report,unless the context otherwise requires,the terms“Lenovo”or“Lenovo Group”or the“Group”refers to Lenovo Group Limited together with it

48、s subsidiaries.The contents of this report apply to the Company,together with its principal Lenovo-branded and Motorola-branded subsidiaries(the Covered Entities),except where noted.Where certain topics also include other principal subsidiaries,it is noted.The scope of the Covered Entities material

49、topics and the boundaries within their value chain are detailed in the table included in the Appendix of this report.The table also includes the scope of coverage for the information that extends to subsidiaries directly or indirectly held by the Company and that are identified in the FY 2023/24 Ann

50、ual Report.All disclosures and results are for the Companys progress in FY 2023/24 unless otherwise noted.The scope of this report was determined using a financial threshold with reference to the contributions of the subsidiaries or operations to the total revenue of the Group.Basis of calculationsA

51、ll financial data is denoted in US Dollars.The Company may in some instances face various challenges when measuring its performance.If there are contingencies associated with the data provided,those contingencies will be noted in the documentation.Contact informationFor questions or other informatio

52、n about this report,please contact:Ms.Jeannie Kwong,ESG Reporting Manager8001 Development Drive,Morrisville,NC 27560Email:2.0 About this reportAbout this reportThis is the 18th annual Environmental,Social,and Governance(ESG)Report of Lenovo Group Limited1(HKD counter stock code:992/RMB counter stock

53、 code:80992)(“the Company”),which covers the Fiscal Year(FY)2023/24(April 1,2023 March 31,2024).This report is considered a companion document to the Companys FY 2023/24 Annual Report.The annual ESG update can be found in the Managements discussion&analysis of the Annual Report.Report contentThe con

54、tent of this report is guided by the ESG Reporting Guide as set out in Appendix C2 to the Rules Governing the Listing Rules of Securities(Listing Rules)on The Stock Exchange of Hong Kong Limited(the Hong Kong Stock Exchange),the Global Reporting Initiative(GRI)Standards,and the needs of Lenovos stak

55、eholders.This report has been prepared with reference to the GRI 2021 Standards and in accordance with the ESG Reporting 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 Com

56、pany has complied with all mandatory disclosure requirements and“comply or explain”provisions,including following the reporting principles,as set out in the ESG Reporting Guide of the Hong Kong Stock Exchange.The Company adheres to the following reporting principles in preparing the report:Materiali

57、ty The Company conducts regular materiality assessments and stakeholder engagement to identify and report on material ESG issues to investors and other stakeholders.Quantitative The Company,where appropriate,sets targets with the aim to reduce its impacts and to evaluate and validate its efforts in

58、a measurable manner.Balance The Company aims to present information in a transparent and unbiased manner to provide a holistic view of its overall ESG performance.Consistency The Company aims to use consistent methodologies to allow for meaningful comparisons of ESG data over time and provide inform

59、ation where there are significant changes.1 Lenovo Group Limited is the ultimate holding company of Lenovo Group.As a holding company,it does not design,develop,manufacture,or distribute products or services,or control any activities of the Companys subsidiaries in the design,development,manufacture

60、,or distribution of products or services.11Lenovo Group Limited 2023/24 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 AppendixOrganiz

61、ational profileLenovo is a global technology powerhouse employing approximately 69,500 people around the world and serving millions of customers every day in 180 markets.The Company is incorporated and listed in Hong Kong SAR,China,with headquarters in Beijing,China,and North Carolina,USA.Focused on

62、 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 that fuel the advancement of New IT technologies(client,edge,cloud,network,and intelligence)including server,storage,mobile,software,soluti

63、ons,and services.Lenovo acquired IBMs PC Division in May 2005.In January 2011,the Company 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 b

64、oth Motorola Mobility and IBMs X86 servers.In November 2017,Lenovo launched a joint venture with Fujitsu Limited.In 2022,the Company announced a strategic partnership with PCCW Limited to form a technology solutions powerhouse,leveraging the combined strengths of both companies.Lenovo has a flexible

65、,resilient global supply chain that was ranked#8 in Gartners Top 25 Global Supply Chains in 2023.To meet the demands of its diverse,global customer base,Lenovo has established company locations,research centers,and manufacturing sites around the world.180MarketsGlobal supply chain profile10M+Order l

66、inesper year2,000+Suppliers1B+Globalcustomers120M+Shipments30+Globalmanufacturingsites#8Gartner 2023Global Supply ChainTop 25(up 1 place)$150MDigitaltransformationinvestment12Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportMaterial topicsLenovo recognizes the importance of und

67、erstanding a variety of informed perspectives as it develops and drives its ESG programs.Through ongoing engagement with stakeholders,the Company identifies ESG-related material topics through a process that includes a range of inputs which align with its significant environmental,social,and governa

68、nce impacts;or that substantively influence the decisions of stakeholders.The sources of input include but are not limited to customer surveys,benchmarking of industry trends,ESG reporting frameworks,investor outreach,requirements under the Listing Rules,regulatory agencies,non-governmental organiza

69、tions(NGOs),and various internal and external stakeholders.The ESG-related material topics are identified and prioritized by considering the degree of importance of each topic related to:Lenovos business continuity Lenovos stakeholders Lenovos impact on the economy,environment,and people,including h

70、uman rightsThis prioritization exercise is carried out using stakeholder inclusiveness and materiality principles.The information derived from this process helps set the Groups ESG goals,targets,disclosure practices,and ongoing engagement with its stakeholders.The material topics identified for the

71、FY 2023/24 reporting year are detailed in the chart below.The Board of Directors and the ESG Executive Oversight Committee(ESG EOC)of the Company have reviewed and approved the materiality assessment process and results,ensuring that there is alignment with the Groups policies,business strategies,an

72、d risk priorities.Details regarding the Companys ESG Governance and the role of the ESG EOC are included in the Governance section of this report.Environmental Climate changeEnergy managementProduct end-of-life management Product energy efciency and carbon footprint Product materials Product packagi

73、ngProduct repairability Supply chain management-environmental Transportation and distribution Waste managementWater managementGovernance Cyber security and data privacyEthics and integrityInnovationProduct quality and safety Regulatory complianceReporting and disclosuresStakeholder engagementSocial

74、Community engagementEthical Artificial Intelligence(AI)2Human rights Health and safetyDiversity and inclusion Labor practicesPhilanthropy Stakeholder engagementThe Group actively manages its relationships with customers,employees,suppliers,investors,regulators,members of the communities in which it

75、operates,and other stakeholders who may be impacted by the organizations ESG performance and whose actions can affect the organizations value.Direct and indirect stakeholder engagement is conducted through regular business practices or through interactions with relevant stakeholders.2 This topic was

76、 initially identified as a social matter during the Companys materiality assessment but as the importance of AI has grown,the impacts are being managed through the Companys governance practices.As a result,this topic is discussed in the Governance section.13Lenovo Group Limited 2023/24 Environmental

77、,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 AppendixStakeholder representativesCommunication methods and channelsCommunication topicsInvestorsIn

78、vestor Relations;Analysts;shareholders;financial institutions;Hong Kong Exchanges and Clearing LimitedInterim and Annual Reports;Annual General Meeting(AGM)and other General Meetings;website;webcastsQuarterly,interim,and annual financial results;climate change;Diversity and Inclusion(D&I);corporate

79、governance;ESG initiatives,goals,and targetsEmployeesHuman Resources;TalentAcquisition;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 e

80、ngagementCustomersSales;Customer SupportDirect interactions with 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

81、 due diligence informationSupply chainSuppliers;Global Supply 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;ph

82、ilanthropic organizations;civic and community partnerships;regulators 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

83、 working groups;webinars;newslettersSupply chain due diligence;climate change;water management;product end-of-life management;circular economy;D&I;philanthropy Board of DirectorsCompany Secretary;Directors;LenovoExecutive Committee;ESG Executive Oversight CommitteeBoard meetings and newsletters;emai

84、ls;AGMCorporate governance;ESG oversight;climate change topics;ESG risks and opportunities;ethics and complianceRegulators andlegislatorsGovernment agencies;patent board;GovernmentAfairs;LegalCompliance assessment tools;regulatory tracking services;external legal resources;newsletters;webinarsRegula

85、tory requirements and trends;compliance requirements;data security and privacy requirements;labor practice requirementsIndustry associationsNational or local industry associations;certification or conformance groups;industry councils;standards development working groupsNewsletters;meetings;webinars;

86、emailsPolicy recommendations;regulatory updates and standards development activities for energy efciency;chemicals restrictions;ecolabelsThese lists depict representative examples and are not exhaustive.14Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportAligning with the United

87、 Nations Sustainable Development GoalsWith 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

88、 a signatory supporter to the United Nations 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 improvement as it align

89、s operations and practices with the ten principles of the UNGC.The principles promote a value system that supports the fundamental responsibilities in the areas of governance,human rights,labor,environment,and anti-corruption in the markets where the Company operates.See here for information on the

90、Companys UNGC Communication on Progress(CoP).The Companys 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.Environmen

91、talClimate changeEnergy management Product energy efficiency Product carbon footprintProduct end-of-life managementProduct materialsProduct packaging Product repairabilitySupply chain management environmentalTransportation and distributionWaste managementWater management15Lenovo Group Limited 2023/2

92、4 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 AppendixSocialDiversity and inclusionEthical management of AIHealth and safetyHuman r

93、ights Labor practicesPhilanthropy and community engagementGovernanceCyber security and data privacyEthics and integrityInnovationProduct quality and safetyRegulatory compliance16Lenovo Group Limited 2023/24 Environmental,Social and Governance Report17Lenovo Group Limited 2023/24 Environmental,Social

94、 and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress Appendix3.0EnvironmentalEnvironmental management system(EMS)Climate changeWasteWaterEnvironmentally conscio

95、us productsPackagingProduct end-of-life management(PELM)Circular economyBiodiversity18192526273739404118Lenovo Group Limited 2023/24 Environmental,Social and Governance Report3.0 EnvironmentalEnvironmental management system(EMS)The Company manages the environmental elements of its operations through

96、 a global environmental management system(EMS)that covers the Companys worldwide product design,development,and manufacturing operations(including distribution,fulfillment,and internal repair operations)for computer products and devices,data center products,mobile devices,smart devices,accessories,a

97、nd converged network equipment.The scope encompasses these same activities when performed by its subsidiary and/or affiliate 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,

98、implemented,and maintained an Environmental Affairs Policy which can be viewed here.Within the framework of the Companys EMS,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 si

99、gnificant impacts on the environment using a methodology that includes input from the Companys Enterprise Risk Management(ERM)process.Metrics and controls are established for these significant environmental aspects.Performance relative to these metrics is tracked and reported.Performance targets are

100、 established for select environmental aspects annually with considerations including Environmental Affairs Policy,regulatory requirements,customer requirements,stakeholder input,environmental and financial impact,and management directives.During FY 2023/24,the Companys significant environmental aspe

101、cts included:Product materials including use of recycled plastics and environmentally preferable materials where possible Product packaging Product energy consumption and emissions Product end-of-life management Site air emissions,specifically greenhouse gas(GHG)emissions Site energy consumption Sup

102、plier environmental performance Product transportation Waste management Water management Impact of Lenovos net-zero commitmentObjective and performance targets were established for the aspects listed above.The Companys performance against these objectives and targets is available in Section 8.0.The

103、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)data is externally verified to a limited level of assurance.The FY 2023/24 Verification Statements for GHG,Energy,Waste and Water can be vie

104、wed here.Lenovo ESG NavigatorThe Company has developed and tested an innovative ESG data management system called Lenovo ESG Navigator that helps monitor key ESG metrics and deliver near-real-time insights.In FY 2023/24,the Company deployed Lenovo ESG Navigator at two manufacturing sites in China th

105、e Companys Lenovo South Smart Campus and Tianjin Smart Campus facilities where it is being used to collect and monitor environmental data,including energy,greenhouse gas emissions,water,and waste data.In addition,Lenovo ESG Navigator is in use at the Companys Beijing Headquarters where it is deploye

106、d as a smart building solution and within the Companys Global Supply Chain where it collects and monitors select ESG data related to suppliers and products.As next steps,it plans to continue to coach users at the facilities where it has been deployed on Lenovo ESG Navigators effective use and will c

107、ontinue to rollout the platform to additional manufacturing sites beginning with its facility in Monterrey,Mexico.The Company anticipates the tool to have many benefits including:driving progress toward the Companys net-zero emissions target and other environmental targets,reducing manual workload r

108、elated to data collection and reporting,improving data accuracy,providing near-real-time tracking and analysis of environmental KPIs,centralizing ESG data and documents,and facilitating ESG knowledge sharing.At the sites where Lenovo ESG Navigator has been deployed,the environmental focal points are

109、 using the system to provide the data input into the Companys internal environmental database.19Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectiv

110、es and targets Long-term KPI progress AppendixThe Companys Chief Legal&Corporate Responsibility Officer provides executive leadership for its ESG position,including climate change programs.In addition,the ESG Executive Oversight Committee(EOC),chaired by the Chief Legal&Corporate Responsibility Offi

111、cer,provides strategic direction and facilitates the coordination of ESG efforts across the Company,including proposing recommendations for the effective management of ESG programs.The ESG EOC is comprised of senior management from across the business and functional areas and is chartered to promote

112、 a culture that encourages strong ESG performance,including compliance and leadership activities.Regular updates on ESG issues,including updates on topics discussed by the ESG EOC,are also provided to the Board and its Committees from the Chief Legal&Corporate Responsibility Officer.Concentrated dis

113、cussion on ESG issues,including climate change,assists the Board in making the most appropriate decisions and providing oversight based on the long-term risks and opportunities that impact its stakeholders and the business.At least annually,the Board is briefed on the Companys ESG KPIs including the

114、 Companys climate strategy and progress towards its climate change mitigation goals.Climate changeThe Company recognizes that human activities are contributing to climate change and concurs with the findings of current climate science as described in the latest assessment report from the Intergovern

115、mental 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 levels and hold global average temperatures to acceptable incr

116、eases.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:Implementing a corporate Climate and Energy Policy Executing a long-term c

117、omprehensive Climate Change Strategy aligned to validated SBTi net-zero targets Setting corporate-wide objectives and targets which support the above Policy and StrategyN2OCO2CH4SF6NF3FCsHFCsScope 3 Downstream Transportation and distribution Processing of sold products Use of sold products End-of-li

118、fe treatment of sold products Leased assets Franchises InvestmentsLenovo 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 com

119、muting Leased assetsN2OCO2CH4SF6NF3FCsHFCsScope 3 Downstream3 Transportation anddistribution Processing of sold products Use of sold products End-of-life treatment of sold products Leased assets Franchises InvestmentsLenovo GHGEmissionsScope 3 Upstream3 Purchased goods and services Capital goods Fue

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

121、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 relevant to t

122、he Company.20Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportScience-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 ne

123、t-zero through the Business Ambition for 1.5C campaign,an official 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 earl

124、y adopter of the science-based emissions reduction approach,after 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 Pa

125、ris Agreement,and its Scope 3 emissions reduction targets meet 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

126、Companys net-zero target is to achieve a 90 percent reduction 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

127、 its near-term,SBTi-validated 2030 emissions reduction targets.In September 2023,Lenovo joined the UN Global Compact Forward Faster initiative to accelerate private sector action towards the SDGs,specifically committing to the climate action and water resilience targets within the initiative.By work

128、ing 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 for their e

129、missions reduction.Without aligning to SBTi,it is difficult to validate or know when a net-zero target is reached.Lenovos mature ISO 14001 Environmental Management System(EMS)gives the Company a strong framework on which to set annual targets to help us drive progress towards its 2030 and 2050 SBTi

130、goals.21Lenovo Group Limited 2023/24 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 AppendixThese targets have a base year of FY 2018/

131、19,near-term target year of FY 2029/30,and net-zero target 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 2023/24.FY 2029/30TARGETSTATUS AS OF FY 2023/24BASE YEAR:FY 2018/19-50%-35%-66.5%-25%-90

132、%ROAD MAPLENOVO EMISSIONS REDUCTION NEAR-TERM TARGETSReduce 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 profitReduce Scope 3 GHG emissions(value ch

133、ain)from use of sold products 35%on average for comparable productsReduce 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 efciencyA

134、bove concepts continue drive energy efciency at Lenovo sites,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 scorecar

135、ds(evaluation process)Expand supplier program to greater 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

136、 generation,and renewable energy commoditiesFY 2049/50TARGETSTATUS AS OF FY 2023/24BASE 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,refor

137、estation,or other meansOn-TrackOn-Track 1On-Track 1On-Track 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 2024/25 ESG Report,overall supporting data and target

138、status will reflect any improved input data.22Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportOther air emissionsThe Companys baseline environmental engineering specification prohibits the use of ozone-depleting substances in its products and manufacturing processes except in

139、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 substances to be reported as an environmental incident,including unintentional releases.During FY 2

140、023/24,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(NOx),sulfur oxides(SOx),and particulate matter(PM).In addition,the Company has no wet chemica

141、l 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 but associated fugitive emissions are minimal and are not quantified.Climate change risks and

142、 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 include its Group Risk Management and Control(GRMC)process and its annual significant e

143、nvironmental 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 versa.1.The Companys formal risk management process covers all areas of the Companys

144、 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 and the risk of non-compliance with ESG requirements or regulations.Each major business

145、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.2.Energy consumption,the associated GHG emissions,

146、and net-zero targets 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 aspect methodology in accordance with the requirements of the Companys EMS.Per these require

147、ments,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 considered in the ERM process described above.The Companys climate risk assessment in FY 202

148、3/24 also included climate scenario analysis to explore how physical and transition risks and opportunities of climate change can impact its business.The climate scenario analysis indicates that climate risks may result in negative impacts to the Company,however,the impact of opportunities under 1.5

149、 C scenario is positive and much higher if the Company is proactive in exploring climate-related opportunities,including new products such as sustainability services offered to customers.Therefore,the Company has committed to reduce 90%of full scope emissions to keep global warming potential within

150、1.5 C and continues to broaden its product offerings in sustainability services and other areas.Its ESG materiality assessment identifies energy and emissions as material topics that it should prioritize and focus on in its environmental programs.In support of UN Sustainable Development Goal(SDG)13

151、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 with the SDGs are available in Section 2.0.For more information about the Companys identification and assessment of climate-related risks and o

152、pportunities,metrics,and actions to address climate change,please read the Companys responses to the most recent CDP Climate questionnaire.In 2023,the Company scored an A“Leadership Level”on CDPs Climate Change questionnaire which reflects its performance toward environmental stewardship through cli

153、mate change mitigation practices in its operations and supply chain.23Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term K

154、PI progress AppendixEnergyUnder 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 similar actions are taken to achieve a

155、ll 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.22 May be accomplished through installation of onsite renewable energy generation,entry in

156、to 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 targets,use renewable energy,and repo

157、rt 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.Renewable energyThe Companys renewable energy installations help to reduce Scope

158、2 emissions at its facilities.In July 2023,the Company enabled additional 3 MW solar electric at a factory in Hefei,China,increasing this locations total solar generation capacity to 10.1 MW.Moreover,the LSSC site in Shenzhen,China,and TJSC site in Tianjin,China,added new 2.3 MW and 4.02 MW solar in

159、stallations,respectively,in FY2023/24.The Companys total solar generation capacity increased 48%compared to last fiscal year.In addition to the 25.12 MW of solar electric that are currently operational,the Company continues to investigate additional opportunities for solar installations in China and

160、 other locations including Brazil and Mexico.The images are of solar panel installations at the Companys Shenzhen,China and Tianjin,China locations.In addition to onsite solar generation capacity,the Company is proactively looking for opportunities for sourcing renewable electricity directly from ut

161、ility suppliers.The TJSC campus in Tianjin,China,has signed a purchase agreement with a local utility supplier to provide 100 percent renewable electricity for its manufacturing and distribution area starting in January 2024.The Green Electricity Certificates documenting this renewable electricity a

162、re provided semiannually based on actual electricity consumption.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),Guarantees of Origin(GO),and Non-f

163、ossil certificates(NFCs).In FY 2023/24,the Company purchased renewable commodities that supported 100 percent renewable energy projects consisting of wind and/or solar power in various parts of the world including Brazil,China,India,Japan,Europe,Mexico,and US.During FY2023/24,the Company expanded it

164、s renewable energy procurement for the first time to Japan.24Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportOperational energy efficiencyGiven that one of the Companys most significant environmental aspects is emissions associated with energy consumption,it has a goal to cont

165、inually improve the energy efficiency of its operations.In FY 2023/24,the Companys initiatives to help reduce energy consumption included the following methods:Energy Conservation Active Method:Installation of low-energy equipment(including LED lighting,smart lighting system,air compressor,air condi

166、tioning,and chillers)Usage of air compressor heat recovery and reuse Harmonic control technology application of power distribution network Usage of High-efficiency power transformer Employed digitalization,including multiple-level smart energy metering devices,Lenovo ESG Navigator,campus energy mana

167、gement platform,and carbon 3D visualization Energy Conservation Passive Method:Installation of energy-efficient windows or low-emissivity windows Adoption of energy-saving and environmentally conscious materials in new construction Centralized design of power room Architectural design with natural l

168、ighting(including dome design,adding lighting windows,and split-level floor design)Dock leveler heat isolation improvement Management System and Certification Various manufacturing sites,office locations in EMEA,and the Beijing headquarters location are ISO 50001:2018 certified The new Tianjin manuf

169、acturing sites buildings 1 and 8,and the Beijing headquarters are LEED Gold certified Energy Conservation Education Employee awareness training Energy conservation promotion(emails and tip signs)Environmental spotlightIn November 2023,Lenovos Tianjin Smart Campus(TJSC)was completed and put into oper

170、ation.TJSC has implemented a total of 90 carbon reduction measures in nine major fields,including architectural design,construction process,campus management,manufacturing process,logistics,canteen,data center,digitalization,and renewable energy.Lenovo deployed the Lenovo ESG Navigator to support TJ

171、SC.This integrated solution replaces the traditional manual management of ESG metrics with a flexible,transparent,and highly automated approach as it captures data across the value chain.LogisticsLogistics is an important part of Lenovos global supply chain and a key component of the Companys plan t

172、o meet net-zero by 2050.Lenovo is decarbonizing its logistics by deploying innovative solutions including demand management,low carbon transport,low carbon fuel,consolidation and utilization,and external partnerships.In FY 2023/24,the priorities of Companys logistics included:Demand management The C

173、ompany is reducing transportation activity by using ultra-light pallets for its Intelligent Device Groups(IDG)business groups products.The Company is directing shipments to Australia and locating fulfillment centers closer to its customers in Malaysia.25Lenovo Group Limited 2023/24 Environmental,Soc

174、ial and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixLow carbon transport Using rail and sea freight when feasible which are lower carbon transportat

175、ion compared with road and air freight.The Company progressed its transition from air freight to road and sea freight including using the roll-on/roll-off shipping which replaced more than 50 percent emergent air delivery in Asia Pacific,and more than 96 percent of total Infrastructure Solutions Gro

176、ups(ISG)shipments are transported by road in North America and China.The Company increased the usage of rail freight in China,Europe and Latin America,thus reducing carbon emissions and other air pollutants by avoid using diesel truck.Low carbon fuel Air shipments contribute roughly 87 percent of Le

177、novos logistics-related emissions,the Company aims to cut emissions by transitioning to sustainable aviation fuel(SAF),which is made of waste biomass such as used cooking oil(UCO).SAF causes around 80 percent less CO2 emissions per flight than conventional aviation fuel.The Company expanded alternat

178、ive fuel delivery in Brazil,China,Chile,Malaysia,Mexico,the Netherlands,Poland,Thailand,and the UK.Consolidation and utilization The Company optimizes the trailer loading for each business unit and combines trailers where possible.In FY 2023/24,the Company improved container utilization of truck shi

179、pments in Hong Kong from 51%to 71%as well as co-loading goods between business groups products for ocean freight.External partnerships The Company is an active partner to industry-wide coalitions,sustainable logistics initiatives,government organizations and NGOs,such as Global Logistics Emission Co

180、uncil(GLEC),Smart Freight Centre China and US Environmental Protection Agency(EPA)SmartWay program.Striving to further reduce emissions,the Company aims to ensure that all stakeholders make a difference.Lenovo updated its logistics KPI methodology to require logistics suppliers to share their carbon

181、 emissions data with the Company.The Company also works with suppliers to set goals to reduce emissions.In addition,the Company shares its logistics CO2 report with its customers to improve transparency and increase awareness.WasteThe Companys day-to-day operation around the globe generates non-haza

182、rdous waste and minimal quantities of hazardous waste.To ensure that waste is properly managed and,in an attempt,to minimize environmental impact,the Companys waste,both non-hazardous and hazardous,are separated and collected from the site of generation to be disposed of through third-party waste ma

183、nagement organizations in accordance with its Site Environmental Programs Manual and applicable legal requirements.26Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportDuring the FY 2023/24 reporting year,the Company continued to measure and monitor both non-hazardous and hazardo

184、us 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 on measured data.When no measured data is available,non-haza

185、rdous waste estimations are used,usually based on the headcount at the site and the previous years monthly data from similar sites.The Companys waste data for the current reporting year is presented in Section 7.0.Annual Verification Statements for the Companys total non-hazardous and hazardous wast

186、e are available on the Companys website.The Companys EMS requires sites to report environmental incidents,including waste-related incidents,through the internal environmental database.During the FY 2023/24 reporting year,no waste-related incidents were reported.In addition to internal reporting,the

187、Companys manufacturing facilities periodically undergo audits,some of which cover aspects of waste management.For more information on audits at the Companys facilities,see Section 4.0.The Company recognizes that waste management is important throughout the value chain.The Company requires suppliers

188、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 compliance with RBAs Code of Conduct by most suppliers by spend.For more information on

189、 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 corresponding section.Non-hazardous wasteThe Companys non-hazardous waste includes typical offi

190、ce and cafeteria waste as well as packaging and manufacturing scrap at manufacturing locations.Under the Companys EMS,a global non-hazardous waste recycling target is set annually.For the FY 2023/24 reporting year,the target was to direct 90 percent(+/-5 percent)of the Companys non-hazardous waste t

191、o 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 designated as hazardous by applicable laws or regulations in a country,state,region,or l

192、ocality 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 suppliers.WaterThe Company is working both internally and externally to minimize and miti

193、gate water risks.The Company has:Implemented and maintains a corporate Water Resiliency Policy;Endorsed the UN CEO Water Mandate;Joined the SBTN Corporate Engagement Program,pledging alignment with Science Based Targets Networks(SBTN)goals and vision and contributing advice and end-user insights to

194、the development of SBTN methods and tools as an SBTN Corporate Engagement Participant;and Joined UN Global Compact Forward Faster initiative to accelerate private sector action towards the SDGs,specifically committing to the water resilience target within the initiative.27Lenovo Group Limited 2023/2

195、4 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 AppendixWhile the Company has minimal wet processes,it appreciates the importance of

196、adequate 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-re

197、lated 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.Water risks within the Companys operational footprint and supply chain are assessed annually using publicly availab

198、le water risk tools(World Resources Institutes Aqueduct and WWFs Water Risk Filter Tool).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 questio

199、nnaire.For details on the Companys global partnership with Wine to Water(W|W),a non-profit organization committed to supporting life and dignity for all through the power of clean water,see Section 4.0.Environmentally conscious productsProduct materialsThe Companys corporate-wide environmental stand

200、ards 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 practical.In adhering to this prec

201、autionary 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 occurrences.During the FY 2023/24 reportin

202、g year,the Company continued to measure and monitor water use and risk.In the Companys direct operations,the primary uses of water continue to be for water access,sanitation,and hygiene(WASH)services for employees,contractors,and visitors in its facilities around the globe as well as building coolin

203、g.Because the Companys primary water use is for employee support,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 reporti

204、ng year is presented in Section 7.0.Annual Verification Statements for its total water withdrawal and discharge are available on the Companys website.Approximately 99 percent of the Companys water is supplied by third parties.To date,the Company has not experienced any issues with sourcing water tha

205、t is fit for purpose.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 facility.Exceptions may exist for typical sanitary waste.It also r

206、equires sites to not discharge constituents for which a treatment facility does not have treatment capability,update characterization when a sites activities change,and adhere,as applicable,to the discharge limits of local law,the treatment facility,and any associated permits.The Companys EMS includ

207、es an annual global water target.For the FY 2023/24 reporting year,the target was to maintain per person water withdrawal(volumes not to exceed a 5 percent increase compared to the FY 2022/23 reporting year).The target was achieved through local targets at select sites.The results of the Companys en

208、vironmental 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 2023/24,there were no water-related incidents.In addition to internal reporting,the Companys manuf

209、acturing 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 4.0.28Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportFor materials where economically and technically via

210、ble alternatives do not exist,the Company collects data on usage above the defined concentration limit.This data can 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 p

211、artners and suppliers to demonstrate the same commitment to environmentally sound practices.See the Companys Materials Management webpage for more information.The Company restricts the use of environmentally sensitive materials in its products.This includes the prohibition of ozone-depleting substan

212、ces in all applications;the restriction on the use of persistent organic pollutants(POPs)under the Stockholm Convention;and the elimination of materials covered under European Union(EU)Restriction on Hazardous Substances(RoHS)and Registration,Evaluation,Authorization,and Restriction of Chemicals(REA

213、CH),even beyond the jurisdictions where these regulatory requirements exist.The Companys implementation strategy and 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 polyvi

214、nyl chloride(PVC)and is committed to driving its supply chain toward this goal.The Company continues to focus on eliminating halogens from its top-selling products and across as many commodities as possible and has made progress including the following achievements:Phasing out completely the use of

215、BFR/chlorinated flame retardants(CFR)/PVC in all 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 commodi

216、ties with offerings meet the International Electronics Manufacturing Initiative(iNEMI)definition3 of low halogen All ThinkPad notebooks including printed circuit boards(PCBs)meet the iNEMI definition3 of low halogen except for cables and wires,AC adapter All commercial monitors meet the iNEMI defini

217、tion of low halogen except for their PCB assembly and cables.Furthermore,some monitors fully meet the iNEMI definition3 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)Po

218、lybrominated Diphenyl Ethers(PBDEs)Deca-Brominated Diphenyl Ethers3 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

219、 materials across the Think and Idea family of 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 application

220、s.The Company recognizes that the phase-out of these materials is dependent upon the availability of suitable alternatives that meet its technological,cost,quality,environmental,health,and safety requirements.29Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExecutive letters

221、About this report Environmental Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixPLM SystemsLenovo-BB Owners,Engineers,EFPs.Export Product BOMs from PLM SystemExternal Environmental Compliance Analysis SystemSuppliersLoa

222、d BOMs into Environmental Compliance Analysis SystemLink Lenovo and Supplier parts in Environmental Compliance Analysis SystemDeclare Compliance Store Reports and Environmental Variable(ENV)Sign of Reports available for designated marketSupplier loads part data and publishes in Environmental Complia

223、nce Analysis SystemLegendBB Owners-Building Block Owners BOM-Bill of MaterialsEFP-Environmental Focal PointPLM-Product Lifecycle ManagementREACH Registration,Evaluation,Authorization,and Restriction of ChemicalsRoHS-Restriction on Hazardous SubstancesREACH,RoHS.The Companys business unit environment

224、al engineers utilize the environmental compliance analysis system 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

225、 generated to show the internal Company and external legal requirements 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

226、in the future.It holds suppliers accountable for reporting the 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 o

227、f compliance to the restrictions and for reporting when substances in question are above the specified concentration levels.30Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportBig data set for materials and substancesAs of the end of FY 2023/24,the Companys Full Material Disclos

228、ures(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 and optimization,analyzing materials and mechanical properties,and improving product reliability.The Company does not

229、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,usually for security or intellectual property reasons.The Company will continue its efforts to support FMD and those suppli

230、ers 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-declaration.The Company informs its customers about the environmental attributes of its products as it relates to comp

231、liance 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.Consistent with its precautionary approach,the Company continuously analyzes the regulatory environment and co

232、nsiders 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 restricted substances,as well as the substances of interest to be tracked for reporting and consideration of f

233、uture restrictions.Recycled materialsThe Company continues to incorporate post-consumer recycled content(PCC)plastics,closed-loop post-consumer recycled content plastics(CL PCC),ocean bound plastics(OBP),recycled metals and it also introduced new materials such as post-consumer recycled rare earth m

234、etals into select products.These recycled materials are important to the Companys product development strategy and transition to a circular economy.Using engineered plastics not only helps save the natural resources and energy that would have gone into manufacturing new plastics,but also diverts the

235、se materials from landfills.The Companys increased use of CL PCC is helping to sustain the demand for recycled plastic materials from IT products.Environmental benefits are achieved while still creating a product that meets the Companys high performance standards.The Company currently uses PCC plast

236、ics in laptops,desktops,workstations,monitors,and accessories and is introducing its closed-loop process in more products each year.By FY 2025/26,100%of PC products will contain post-consumer recycled content materials.44 Excludes tablets and accessoriesUsing PCC in IT products presents significant

237、challenges due to the unique structural,performance,and cosmetic requirements associated with these applications.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 engineer

238、s work closely with its suppliers to develop and qualify new grades of plastic resins previously unavailable 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 develo

239、pment teams work with material suppliers and a third-party certification authority to build its CL PCC 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 processe

240、s using a hierarchical waste product traceability scheme.Since early 2005,the Companys cumulative total use of recycled plastics in products has reached over 140 million kilograms(gross)containing PIC,PCC,and/or CL PCC,with net PCC of more than 55 million kilograms and net CL PCC of nearly 25 millio

241、n kilograms.In 2023,the Companys use of plastics containing recycled content was approximately 9.7 million kilograms(gross)with a net CL PCC of approximately 6.6 million kilograms.31Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExecutive letters About this report Environment

242、al Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixThe Companys ESG KPIs include recycled content,refer to Section 9.0.Results of the Companys progress against its recycled content usage targets are available in Section

243、 8.0.In addition to recycled plastics mentioned above,during FY 2023/24,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 and sourced OBP for use in some products.In 2023,the Companys use of

244、 plastics containing OBP was approximately 14,000 kilograms(gross)with a net OBP of approximately 700 kilograms.This year,the Company introduced OBP content in the speaker enclosures of ThinkPad L13 Gen 5 and ThinkPad L13 Yoga Gen 5.OBP content was also introduced into the fan housing,dummy smart ca

245、rd,and dummy SIM cover of the ThinkPad L14 Gen 5 and ThinkPad L16 Gen 1.Recycled metal usage also supports 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 2023/24,the Company

246、expanded the use of recycled aluminum and magnesium to more ThinkPad products and all-in-one(AIO)products,including but not limited to:For Lenovo ThinkPad X1 2-In-1 Gen 9:minimum 75%recycled aluminum for the A cover,minimum 75%recycled aluminum or minimum 90%recycled magnesium for the C cover,and mi

247、nimum 55%recycled aluminum for D cover.For Yoga AIO 9 32IRH8:minimum 75%recycled aluminum for the frame.The Company this year also started to use:minimum 21%recycled steel in main frame of:-ThinkVision P27pz-30,and-ThinkVision P32pz-30,minimum 50%post-consumer recycled copper in thermal module of:-T

248、hinkPad P14s Gen 5,-P16s Gen 3,-T14p Gen 2,-L14 Gen 5,and-L16 Gen 1,and post-consumer recycled rare earth element in the magnet for the speaker,ForcePad,and hall sensor of select ThinkPad products.Many products contain different kinds of recycled and sustainable materials.ThinkPad X1 Carbon Gen 12 c

249、ontains:3.1%pre-consumer recycled carbon fiber in the A cover,minimum 90%recycled magnesium in the C cover,55%recycled aluminum in the D cover,85%post-consumer recycled plastic in the keycap,and 90%post-consumer recycled plastic in the battery enclosure,speaker enclosure,and AC adapter enclosure.32L

250、enovo Group Limited 2023/24 Environmental,Social and Governance ReportMilestones 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 products Introduced recycled aluminum in three produc

251、ts 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 Expanded the use of CL PCR to 103 products,up from 6

252、6 products the previous year Began using CL PCR in a server application for the first time in the Companys ThinkSystem SR9502019 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 tota

253、l product weight2023 Expanded the use of CL PCC to 315 products Qualified 95%CL PCC,85%CL PCC+7%bio-based content recycled plastic for visual products Introduced post-consumer recycled rare earth metals in products Introduced recycled steel and copper in productsProduct energy efficiencyProduct ener

254、gy efficiency remains a core focus for the Company.To ensure that it is adhering to existing and proposed global IT product energy efficiency policies and regulations for current and future technology,the Company collaborates with original equipment manufacturers(OEMs)and industry stakeholder workgr

255、oups.The results of these efforts are leveraged to develop leading-edge products with improved operating 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,includi

256、ng:ENERGY STAR program specifications US Department of Energy(DOE)Appliance and Equipment Standards California 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 Comp

257、uter Specification version 8.0 covering desktop and all-in-one(AIO)PC products.This specification defines 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,interna

258、l power supply(IPS)efficiency,and Energy Efficient Ethernet(EEE).To further improve product energy efficiency 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

259、certification establishes requirements for internal power supplies through independent testing and verification 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 thi

260、s certification are significantly more energy-efficient than other systems equipped with typical power 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-tun

261、ing and have transitioned to newer VRD technology with lower losses to enhance and maximize energy efficiency.33Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain Consolidated metrics EMS perf

262、ormance,objectives and targets Long-term KPI progress AppendixBy FY 2029/30,we will achieve 30%improvement in energy efficiency of Lenovo notebooks 5 and Motorola products.6By FY 2029/30,we will achieve 50%improvement in energy efficiency of Lenovo desktops 5and servers.55 Energy efficiency improvem

263、ent on average for comparable products relative to FY 2018/196 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,in

264、cluding but not limited to US,China,Japan,and Europe.Many of the Companys notebooks,desktops,servers,and monitors meet and often exceed the current ENERGY STAR requirements.In 2023 and 2024,five and three Company monitors,respectively,were recognized as“ENERGY STAR Most Efficient.”The ENERGY STAR Mo

265、st Efficient list highlights products utilizing the latest in technological innovation 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

266、about the Companys energy-efficient products,see its Product Energy Efficiency webpage.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 s

267、ervers).Product development teams are actively investigating and implementing technical enhancements to support power efficiency improvements and track annual performance against the prescribed targets.Product energy management featuresThe Company offers innovative tools that allow better control of

268、 PC and server 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 ManagementAdjust

269、s system power 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,

270、balancing low 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 th

271、e power load 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 mon

272、itor will gauge how much power each of them needs and adjust according to the requirement.34Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportDurability and repairabilityKeeping a product in use for a longer period is an important aspect of circular economy and reducing climate

273、impact.The Company designs its products to maximize its product lifecycle by focusing on durability and ease of repair for customers of all skill levels.To help keep products in use,the Company offers three-year standard warranties and five years of replacement parts availability on many of itstop-s

274、elling commercial products.Three-year warranties are offered as the base warranty on many top-selling Think branded products,including monitors,notebooks,desktops,and others.Customers can also purchase warranty upgrades to extend the base warranty by one or two years for many products.Base warrantie

275、s for consumer products vary by product type and geography but typically start at one to two years for the base warranty 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

276、for many products along with parts removal and replacement videos.Customers can source spare parts from the Company or its authorized partners.The Companys serviceability engineers are focused on minimizing the interruption to customers during repair and maintenance and consider the products eligibi

277、lity for onsite repair as an indicator for ease of repair.For more details,see the Companys Warranty and Maintenance Services webpage.The Companys ESG KPIs include a repairability KPI,for more information see Section 9.0.To support progress against this KPI the Company continues to increase the numb

278、er of parts that are Customer Replaceable Units(CRU).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

279、cells: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.Offering warranty u

280、pgrades up to five years on many embedded batteries.The longer lifespan is made possible with carefully selected cells and charge algorithms.Product carbon footprintThe Product Carbon Footprint(PCF)or Global Warming Potential(GWP-100)has become a key product attribute for the Company and customers.K

281、nowing the PCF of a product allows customers to better understand the environmental impact of the products they purchase.To provide the Companys customers with PCF values for the broadest set of products,the Company continues to utilize the Product Attribute to Impact Algorithm(PAIA)platform to calc

282、ulate streamlined Life Cycle Assessments(LCAs)of desktops,notebooks,tablets,and workstation computers as well as monitors,servers,storage,and network switch products.With a suite of simplified online tools,PAIA delivered a methodology for information and communications technology(ICT)product footpri

283、nts which originated from a multi-stakeholder initiative of ICT companies that shared insights and best practices.The Companys participation in PAIA is helping to drive a sector-wide streamlined methodology that will be key to transforming ICT companies into sustainable businesses.Using PAIA tools t

284、o calculate product footprints has significantly reduced the time and cost of calculating environmental footprints for its products.The quality and accuracy of the calculations allow the Company to confidently communicate this information with customers and other stakeholders.The Company shares thes

285、e results with enterprise customers and publishes them publicly as PCF information sheets.PCF sheets for specific products can be found on the Companys ECO Declarations webpage.35Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExecutive letters About this report Environmental

286、Social Governance Global supply chain Consolidated metrics EMS performance,objectives and targets Long-term KPI progress AppendixThe Companys product life cycle assessment system is based on the ICT industry eco-design requirements that analyzes the products full life cycle and design process to hel

287、p bring products to the market with less environmental impact.Its product LCA system utilizes the ICT product 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 product

288、s,the Company is working to expand this exercise to include materials and technologies,and components.In 2023,the Company conducted 24 LCAs and LCA based PCF for notebook,desktop,display,server products,and components.The notebook,desktop,display and server products for which LCAs were conducted are

289、 ThinkPad T14 Gen 3,Legion 9 16IRX9,Yoga Pro 9 16IMH9,Yoga 9 2-in-1 14IMH9,Yoga Book 9 13IMU9,ThinkBook 13x G4 IMH,ThinkCentre M950t,ThinkStation K-C2,ThinkVision P27q-30,ThinkVision E22-30,ThinkVision E24-30,ThinkVision E24q-30,ThinkSystem SR650 V3,ThinkPad T14 Gen3 notebook,and P27q-30 display.Whi

290、le there are other voluntary standards available to guide practitioners in compiling 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 standa

291、rd is applied by different practitioners.Compiling PCF using these standards is 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

292、 14044 Life Cycle Assessment(LCA),and ISO 14067 Carbon Footprint of Products.Environmental spotlightThe Company continues to promote the use of sustainable materials beyond its products.On March 31,2023,Lenovo,Peoples Daily New Media and Chishui City of Guizhou Province jointly launched the“Future W

293、ith Bamboo”Sustainable Development Action in Chishui City of Guizhou,China.This initiative is in response to the“Bamboo as a substitute for Plastic Initiative”joint campaign launched by China and the International Bamboo and Rattan Organization.36Lenovo Group Limited 2023/24 Environmental,Social and

294、 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:37Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExecutive letters About this report Environmental So

295、cial 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.Leading the way in innovative packagingAt the Company

296、,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 environmental impact of packaging and logistics.Bamboo fiber

297、The 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.In 2023,the bamboo fiber packaging was expanded to all ThinkPad series(except the E series).It is made from 100 percent renewable bamboo fiber and the box

298、 weight is effectively reduced by 30 percent compared to the previous gift box.ThinkPad Z13 with bamboo gift boxAll PC boxes contain at least 70 percent old corrugated containers8(OCC)recycled content.8 OCC contains both PCC and PIC contentsPackagingPackaging has been identified as a significant env

299、ironmental aspect under the Companys EMS.Its packaging priorities focus on reducing packaging consumption and waste 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 re

300、usable packaging solutionsIn FY 2023/24,the Companys packaging objective was to minimize the material consumption of packaging while driving the use of more environmentally sustainable materials.The Company is intent on reducing the size of its packaging to minimize the materials used while maintain

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

302、 era of packaging offerings for the Company,while also enhancing customer experience.Bamboo fiber has many favorable features,including:Sleek and robust design Lightweight 100 percent renewableThe Companys packaging program requires all corrugated container packaging supplied to be a minimum of 70 p

303、ercent 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-compliant inks.In addition,

304、the Companys packaging program requires the use of Forest Stewardship Council(FSC)certified fibers in liners for all PC products when virgin fibers are used.Since 2008,the Company has eliminated7 4,809 metric tons of packaging consumption by weight.In FY 2023/24 alone,the Company reduced7 packaging

305、consumption by 672 metric tons.7 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.38Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportPlastic-fre

306、e packagingThe Company aims to eliminate plastic materials from product packaging.By combining bamboo fiber technology,self-locking boxes,and other innovative technologies,the packaging team accomplished plastic-free primary packaging on ThinkPad X1 and Z series in FY 2022/23.In FY 2023/24,plastic-f

307、ree primary packaging was expanded to all ThinkPad series(except the E series)and select smartphones.As a result,the Company eliminated 548 metric tons of plastic in packaging.ThinkPad Z13 with plastic-free packagingOcean bound plasticPlastic pollution has negatively affected the oceans ecosystems a

308、nd the marine animals 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 performan

309、ce.The Company launched the first packaging cushion containing OBP(30 percent OBP and 70 percent other recycled plastics)in ThinkPad L14 packaging.In FY 2023/24,the Company expanded the use of OBP as thermoformed cushions or system bags for select desktop/AIO,consumer notebook,and server products.Th

310、e Company estimates these new applications will use 165 metric tons of ocean bound plastic per year.ThinkCentre Neo 30a Gen3 with 30%OBP bag39Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportExecutive letters About this report Environmental Social Governance Global supply chain

311、 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

312、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 extending the product lifecycle through reuse and recycling of products and parts.The PELM program also supports the elimination of end-of-life

313、electronic products being disposed of 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 c

314、overs Company-branded and non-branded 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 indu

315、stry-standard certifications it promotes.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 busin

316、ess needs and include programs for recycling 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)global

317、ly to manage the disposition of IT assets 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,through these circular economy programs,strives to maximize the value and pot

318、ential reuse of excess,returned,and obsolete products and parts across its business 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

319、 to manufacture new products and parts.Management of PELM suppliersThe Company 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 responsible and legally compliant mann

320、er.This program includes:Supplier completion of the Companys initial supplier audit or evaluation form declaring their processing capabilities and controls,management systems for quality,environmental,health and safety,industry standards,legal compliance,downstream facilities disclosures,and evaluat

321、ion criteria,The Companys environmental audit or evaluation of supplier facilities and processes prior to engagement 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 Po

322、ints and final approval by Global ESG management,Database 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

323、conditions related to expected environmental performance 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 guide

324、lines that all recovered products and parts are to be data wiped,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 dis

325、position of non-working products and parts and waste generated from their refurbishing processes and prohibits the shipment of hazardous waste to non-Organization for Economic Cooperation and Development(non-OECD)countries.40Lenovo Group Limited 2023/24 Environmental,Social and Governance ReportNew

326、recycled materials are being researched and introduced into products.By FY 2025/26,the Company plans to include PCC plastic in 100 percent of its notebooks,desktops,workstations,and monitors.Since last fiscal year,the Company has expanded the types of components that contain recycled plastics as wel

327、l as increased the usage 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 post-consumer recycled content plastics by FY 2025/26.The Companys circular design de

328、cisions extend to its packaging as well.The Company 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 re

329、cycled plastics for notebooks,desktops and workstations.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 optimi

330、zing the use of its products 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 and repair.The

331、Company has a goal that by FY 2025/26,84 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

332、 use.The Company offers enterprise 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 oppo

333、rtunities to maximize reuse and 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 critical.Collaboration and credibility are important to the Company du