Today, Lenovo (HKSE: 992) (ADR: LNVGY) published its 17th annual Environmental, Social and Governance (ESG) Report, further demonstrating its commitment to being a responsible corporation around the world with a focus on building a sustainable planet, promoting inclusion, and closing the digital divide. In the new report, the global technology powerhouse reported its increased investment in solar energy, tripling generation since FY 2018/19 driven by solar energy installations at factories and offices around the world. The company also increased its philanthropic investment, measuring nearly US$30M in philanthropic investments resulting in more than 16 million people impacted through global programs and partnerships.
“As a global company, we have seen the impact of climate change on our stakeholders and feel the urgency to combat it together” said Yuanqing Yang, Lenovo’s CEO and Chairman. “In the last fiscal year, we were proud to affirm our commitment to reaching net-zero emissions by 2050 with net-zero targets validated by the Science Based Targets initiative (SBTi) and their first-of-its-kind Net-Zero Standard.”
Lenovo’s leadership in sustainability was bolstered this year when it became one of the first group of companies to have net-zero targets validated by the Science Based Targets initiative. The company is on-track to meet its near-term emissions reduction targets for 2030, including reducing Scope 1 and 2 greenhouse gas emissions by 50% and Scope 3 emissions intensities by 66.5% from purchased goods and services, 35% from sold products, and 25% from upstream transportation and distribution. Lenovo is collaborating with suppliers to reduce its Scope 3 (value chain) emissions, traditionally the largest category of emissions and the most difficult to track in a complex, global supply chain.
Lenovo is building on its tradition of holistic innovations that increase the sustainability of its products and services. In FY 2022/23 Lenovo continued its transition to a circular economy by continually increasing the number of products that integrate ‘closed loop’ recycled content that comes from end-of-life IT and electronics. Lenovo reported nearly 300 products (298) that included recycled plastic content from end-of-life IT and electronics. As an example, the ThinkPad X1 laptops launched at CES 2023 include up to 97% Post Consumer Content (PCC) plastic in the battery enclosure and up to 95% PCC plastic in the speaker enclosures and AC adapter.
Lenovo’s workforce is industry-leading1 in gender inclusion, with 37% women in its overall population and 29% women in technical roles. Lenovo’s efforts to advance women have been recognized through inclusion in the Bloomberg Gender-Equality Index for the fourth time as the company pursues its goal to reach 27% women executive representation by 2025 (current 21%). Lenovo’s values of diversity and inclusion are practiced through 17 employee-led resource groups in offices and regions around the world. The groups are customized for the unique needs across a location’s diversity segments, with specific groups for today’s workforce, from early career talents (Rising Employees At Lenovo) to groups supporting parents in the workplace and career development for people from underrepresented backgrounds. Lenovo’s workforce inclusion initiatives have been recognized by Forbes, the Disability Inclusion Index, and the Human Rights Campaign’s Corporate Equality Index.
In FY 2022/23, Lenovo’s global philanthropy efforts driven by the Lenovo Foundation grew year-on-year, resulting in more than US$30M in charitable impact for communities around the world (investments of funds, product, and estimate of volunteer time). The Foundation’s focus has been on empowering underrepresented populations by helping them access technology and STEM education through strategic partnerships, programs like the TransforMe Skilling Grant Round, and employee volunteerism like the Love on Month of Service.
Lenovo believes in collaborating across its entire value chain to make a sustainable impact. That’s why Lenovo created “Lenovo 360 Circle“, a sustainability community that supports and empowers Lenovo’s downstream ecosystem. By uniting people, programs, and tools, Lenovo 360 Circle unlocks the full breadth & depth of Lenovo’s sustainability strategy for channel partners. The community helps partners align on ESG objectives, break down barriers, and collaborate to tackle sustainability issues as a united front and accelerate decarbonization within the IT industry.
While Lenovo continues its journey to net-zero and works toward more inclusive workplaces and communities, the company is focused on governing its global operations with the highest standards of ethics and compliance. Lenovo’s global supply chain increased its ranking this year, reaching #8 in Gartner’s Top 25 Global Supply Chains. Furthermore, Lenovo’s ESG programs have been recognized by CDP (Carbon Disclosure Project), MSCI (Morgan Stanley Capital International), and the Hong Kong Institute of Certified Public Accountants.
This is Lenovo’s 17th annual ESG Report, covering the Fiscal Year 2022/23 (April 1, 2022 through March 31, 2023).