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General

Lenovo is committed to being a responsible and active corporate citizen, consistently working to improve its business while contributing to the development of society. The company embraces the values of customer satisfaction, innovation, operational excellence and trustworthiness. Lenovo seeks to integrate these core values into every aspect of its business, and into policies and procedures in areas of quality and safety for products, employee welfare, global supply chain, ethical corporate behavior, social investments and environmental affairs. Lenovo has been a member of the Electronic Industry Citizenship Coalition (EICC) since June 2006. The EICC Code of conduct is a code of best practices in supplier engagement that provide guidelines for performance and compliance in the following five key areas:

  • • Labor
  • • Health and safety
  • • Environment
  • • Management System
  • • Ethics
 
   
Supplier Engagement
As an EICC member, Lenovo has adopted the EICC Code of Conduct, implemented a Supplier Self-Assessment Questionnaire (SAQ) for Tier 1 production suppliers, Tier 2 production suppliers, and participated in the EICC and Global e-Sustainability Initiative (GeSI) validated audit program (VAP).

By working together, Lenovo and other member companies are creating a comprehensive strategy, including tools and processes to proactively pave the way for a standards-based approach for monitoring suppliers' performance across several areas of social responsibility. These areas include labor practices, health and safety, ethics, and protection of the environment. By establishing common approaches, we can potentially reduce inefficiency, duplication and make performance easier to audit. 

Lenovo leverages its membership in the EICC to collaborate on industry issues such as conflict minerals and environmental sustainability. Lenovo supports an industry approach to address the conflict minerals issue. Conflict minerals are columbite-tantalite (coltan), cassiterite, wolframite, gold, or their derivatives. Conflict minerals may include any other mineral or its derivatives determined by the Secretary of State to be financing conflict in the DRC (Democratic Republic of the Congo) or an adjoining country. Lenovo has been a participating member company in the EICC-GeSI (Global e-Sustainability Initiative) Extractives Working Group since its inception in 2007. Continuance progress has been made such as:

  • • Published Statements on use of Minerals in Electronics Products
  • • Commissioned studies and reports for education & awareness of issue
  • • Created tantalum supply chain sub-team and hosted workshops
  • • Provided financial & equipment support for ITRI Tin Supply Chain Initiative (iTSCi)
  • • Hosted many stakeholder and multi-industry forums
  • • Developed and piloted an auditing process for smelters to validate DRC conflict free (tantalum, tin)

In 2011, Lenovo will continue to support industry efforts in this area which include:

  • • Further development of the Conflict-Free Smelter Validation Program
  • • Develop a common industry approach to support the requirements of the Securities & Exchange Commission (SEC) on disclosure and due diligence
  • • Support the implementation of a verifiable traceability scheme for the DRC and neighboring countries for conflict-free minerals
  • • Communicate with stakeholders on our positions and initiatives related to metals derived from conflict minerals

Additional detail on industry efforts can be found at http://www.eicc.info/RESOURCES.htm. As a responsible corporate citizen, Lenovo is committed to providing leadership in environmental affairs in all of our business activities and supply chain. For supply chain, Lenovo plans to continue its support and participation in the EICC Carbon Reporting System. The EICC Carbon Reporting System leverages the tools developed during the 2008-2009 pilot program and other standards such as the Carbon Disclosure Project. The platform integrates a standardized questionnaire to gather quantitative carbon emissions & energy data with the help of an emissions calculator. Lenovo embraces the benefits of this industry tool which include reducing redundant customer requests, increasing supply chain awareness of carbon foot printing and ability to improve supply chain performance. Results from the Results from the 2009 EICC- Carbon Reporting System pilot Initiative can be found at: http://www.eicc.info/documents/BSR_EICC_A_Practical_Approach_to_Greening_the_Electronics_Supply_Chain.pdf Lenovo plans to continue to support industry efforts and collaboration in these important areas.

Supplier compliance with the EICC code is a continuous improvement process. As part of Lenovo's supplier engagement process, we continue to engage with our Tier 1 suppliers to strengthen their commitment to EICC by signing formal contract amendments, as well as completing self-assessment questionnaires online, conducting compliance audits using third-party EICC auditors and requiring similar requirements of their suppliers. Ninety-eight percent of Lenovo's Tier-1 production suppliers have agreed to comply with the EICC, complete detailed Self-Assessment Questionnaires (SAQs) about their performance, and to self-audit using approved EICC audit firms. Currently, approximately 80% of Lenovo component spend suppliers have completed self-assessments and/or 3rd party audits.

Lenovo audit findings still show that "working hours" is the most prevalent area of non-conformance to the EICC code. Lenovo will continue to work with its suppliers to put corrective actions in place to reduce excessive overtime. Also, we continue to support industry efforts by participating in EICC work group activities to better understand the root causes and have supported development of tools to help mitigate and control excessive worker overtime. Lenovo continues to work with its supply chain on audits and corrective actions required to validate performance and drive sustainable improvements. Lenovo is committed to promoting and fostering capability building among our supplier community that will drive innovation and leadership in this area.

Finally, Lenovo is expanding its supplier sustainability programs into its Logistics suppliers. Risk assessments continue to be performed to identify suppliers needing SAQ's and additional internal and 3rd Party audits.

 
   
Internal Global Supply Chain Operations

Lenovo applies the same demanding EICC standards to its own Global Supply Chain operations. Lenovo has completed 3rd Party EICC audits on its six manufacturing facilities in China, Mexico and India. Overall results were rated strong by the auditing organization along with prompt corrective action on identified improvement opportunities. Periodic EICC audits are on-going to monitor and validate successful performance in this area. In addition, Lenovo conducts rigorous internal audits of all global manufacturing locations to ensure regulatory and external management system compliance. All Lenovo global manufacturing locations are ISO 9001 (Quality), ISO 14001 (Environmental) and OHSAS 18001 (Health and Safety) certified.
 
Lenovo continues to optimize its global logistics program to drive additional product volumes to shipping methods that are more environmentally friendly, such as ship and rail. It also is working closely with its shipping partners to ship products responsibly. For example, in North America, Lenovo has joined the EPA SmartWay program and is requesting its North American carriers to comply. The SmartWay Transport Partnership is an innovative collaboration between the freight industry and the U.S. Environmental Protection Agency that promotes fuel efficiency improvements while significantly reducing greenhouse gas emissions.  
   
Resources

Eradicating Slavery and Human Trafficking
Lenovo’s commitment to social responsibility
Electronic Industry Code of Conduct (EICC)
EICC Website
EICC member



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