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Lenovo ESG

Supply Chain

Our Approach

Lenovo is committed to sound Environmental, Social and Governance (ESG) management across its end-to-end supply chain process. Along with demanding high-quality materials, parts, and products from our suppliers, we have ESG-specific systems in place, supported by contractual requirements to help ensure our suppliers meet or exceed applicable labor, environmental, health and safety, and ethics standards.

We recognize there is no end to this journey and there will be opportunities for improvement continually. Our approach includes:

Aspiring to have all workers in our supply chain be treated with dignity and respect
Managing all operations consistent with the spirit and intent of the U.N. Universal Declaration of Human Rights and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work
Expecting our suppliers to continually reduce the environmental impacts of their operations
Obligating our suppliers to always conduct their business ethically
Working tirelessly to develop and maintain our supplier relationships

Our Supply Chain at a Glance

As an approximate percentage of production spend:


of our procurement is with fewer than 130 large suppliers who typically have robust sustainability programs

of our procurement is with fewer than 130 large suppliers who typically have robust sustainability programs


of our suppliers are independently audited and covered in our direct validation efforts

of our suppliers are independently audited and covered in our direct validation efforts


of our suppliers have ISO 9001 and ISO 14001 certifications

of our suppliers have ISO 9001 and ISO 14001 certifications


of our suppliers issue formal public sustainability reports

of our suppliers issue formal public sustainability reports


of our suppliers are formal Responsible Business Alliance members

of our suppliers are formal Responsible Business Alliance members

* Data as of July 2023 Key Supplier Base Report

Lenovo Supplier Code of Conduct

Key Elements:

  • Procurement Values and Ethical Dealings
  • Conflicts of Interest and Business Integrity
  • Supply Chain Security
  • Human Rights
  • Responsible Business Alliance
  • Employment Agencies
  • Climate Change
  • Environmental Aspects
  • Responsible Sourcing of Raw Materials
  • Non-Discrimination and Non-Retaliation
  • Supplier Diversity
  • Sustainability Reports, Assessments and Product Certifications
  • Supply Chain Due Diligence
  • Reporting Concerns

Human Rights, Environmental Impacts, Integrity

We expect our suppliers to meet the highest standards of responsible and ethical conduct regarding how they treat their workers and the environment, and how they do business. This expectation is supported by contractual requirements.

Lenovo’s standard purchase order (PO), PO Terms and Conditions, and contracts stipulate supplier compliance with our comprehensive Supplier Code of Conduct. This code upholds our values and includes provisions that prohibit human trafficking, discrimination, retaliation to worker complaints, bribery, and corruption. It also requires our suppliers to have formal grievance mechanisms in place. We will assess conformance to these requirements in making procurement decisions.

Lenovo works with the electronics industry on supply chain issues through our Responsible Business Alliance (RBA) (formerly the Electronics Industry Citizenship Coalition (EICC)) membership. Lenovo contractually applies the RBA Code of Conduct and associated audit requirements.

Support of RBA programs and Validated Audit Process (VAP) audits

Lenovo requires suppliers to adhere to the RBA Code of Conduct. Regardless of their RBA self-assessment risk level, Lenovo requires 95 percent of suppliers by spend to conduct an RBA audit (including both Validated Audit Program (VAP) and equivalent independent, third-party audit (non-VAP audit) by RBA-approved auditors) every two years. Lenovo started an effort to require its suppliers to commit to achieving RBA VAP) Recognition and Factory of Choice (FOC) designations to demonstrate leadership in ESG.

In FY 2022/23, 83 percent of Lenovo’s suppliers by spend achieved VAP Recognition, and almost 17 percent of the spend was designated FOC. The table below provides an overview of Lenovo’s suppliers’ annual RBA audit performance.

Historical average scores1

Labor Score Health & Safety Score Environment Score Ethics Score Management Score Total Score # of Priority findings2 # of Major findings2
2019 157 174 184 197 187 153 0.4 5.0
2020 157 173 189 199 190 155 0.3 5.4
2021 159 182 193 198 195 164 0.1 4.7
2022 160 182 190 199 196 164 0.2 4.4
ODM Partners
2019 156 175 182 197 188 156 0.2 5.6
2020 166 188 196 200 197 172 0.2 3.3
2021 167 182 195 195 195 170 0.0 4.0
2022 165 191 187 198 194 172 0.0 3.8

*Data as in Lenovo FY 2022/23 ESG Report

1  Scores are based on calendar year.

2  The average number of findings is calculated based on the total number of findings and total number of reports per calendar year.

Responding to RBA audit labor-related results

When there are audit findings, we ensure closure of supplier action plan. In FY 2022/23, there were no violations reported related to forced labor or child labor by Lenovo’s suppliers who completed the RBA VAP audits. In FY 2022/23, 56 suppliers had other major labor findings identified in their audits. The most common supplier audit findings are related to an industry-wide problem of excessive working hours and insufficient time off for their employees.

Lenovo requires its outsourced manufacturers to report their employees’ working hours and time of performance monthly via an online tool so that it can take action to resolve any issues that are identified. Agreements for improvement were reached with suppliers, as a result, no relationships were terminated due to aforementioned labor findings.

Forced Labor

To better detect and mitigate the forced labor risks, Lenovo adopts and implements preventive measures. In FY 2022/23, some of Lenovo’s actions to prevent this practice were:

  • Added a section covering “Employment Agencies” to the latest version of the Supplier Code of Conduct for enhancing the management of labor agents and contractors
  • Implemented a third-party ESG risk assessment tool (EcoVadis) to screen suppliers throughout the supply chain
  • Provided a live education session to buyers on forced labor and potential red flags related to forced labor
  • Provided a webinar to suppliers on the topic of Labor Compliance Management
  • Invested in a third-party supply chain risk management platform (Everstream Analytics)
  • Conducted verification through RBA audits and participated in regular RBA Responsible Labor Initiative and VAP workgroup engagements

Environmental Impact

Currently, we ask our suppliers to report their environmental impact data (GHG emissions, water, waste, renewable energy) formally via the RBA or the CDP reporting methodologies in addition to responding to the Institute of Public and Environmental Affairs (IPE).

The FY 2022/23 Program performance as below:

Climate Change

Lenovo’s most recent supplier engagement efforts covered 98 percent of procurement spend. The efforts identified the following results (reported by total procurement spend):
Suppliers with public GHG reduction goals
Suppliers who track and report renewable energy generation and purchases
Suppliers with third-party verification of their GHG emissions data
Suppliers with renewable energy goals

Science Based Targets for Suppliers

Lenovo is engaging and incentivizing production procurement and ODM suppliers to also commit to the Science-Based Target initiative (SBTi).
During the reporting period, 45 percent of its procurement spend included suppliers with formally recognized SBT’s which was an increase of 17 percent from the previous year. It is Lenovo’s goal to achieve 95 percent of procurement spend with suppliers that implement SBTs.


During the last data collection period, 84 percent of procurement spend was with suppliers with quantified water reduction goals.
Water risks within Lenovo’s operational footprint and supply chain are assessed annually using publicly available water risk tools ( World Resources Institute’s Aqueduct and WWF’s Water Risk Filter Tool).


The waste-related information collected from suppliers includes data such as annual hazardous and nonhazardous waste volumes. During the last data collection period, 76 percent of procurement spend was with suppliers with quantified waste reduction goals


In 2022, Lenovo achieved a CDP score of “A-” for its Supplier Engagement Rating in Climate Change, also listed on the Supplier Engagement Rating Leader Board (has maintained this honor for five consecutive years, since 2018).
Lenovo’s increasing efforts to optimize supply chain environmental impact has been recognized by the Institute of Public & Environmental Affairs (IPE) Green Supply Chain Corporate Information Transparency Index (CITI) and the Corporate Climate Action Transparency Index (CATI) and was ranked among the Top 10 in the IT industry.

Responsible Sourcing of Raw Materials

100% Conformant or active 3TG smelters & refiners
96% Suppliers with public conflict mineral policy
79% Suppliers who are formal RMI members
76% Suppliers with public conflict minerals report


Lenovo strategically expanded the scope of ESG assessments to suppliers across all categories by launching the EcoVadis tools. In FY 2022/23, it expanded the scope of ESG assessments from key Tier 1 suppliers to strategic Tier N and indirect procurement suppliers.
Lenovo has implemented the EcoVadis IQ tool to screen suppliers’ ESG risk, based on their inherent Corporate Social Responsibility (CSR) risks and procurement information. In FY 2022/23, approximately 1,000 suppliers were processed in the EcoVadis IQ tool, and 285 suppliers were invited to conduct an EcoVadis ESG assessment.
Lenovo continues to ensure that all strategically important suppliers participate in the EcoVadis program and achieve at least 45 of 100 points or a comparable audit result. Suppliers scoring less than 45 out of 100 points must implement a corrective action plan (CAP) and the progress will be tracked within 90 days.
In 2023, Lenovo has been recognized for its exceptional commitment to sustainability by receiving the Outstanding Leadership Program award at the 2023 EcoVadis Sustainable Procurement Awards. This prestigious accolade is a testament to Lenovo’s dedication to advancing sustainable practices throughout its procurement processes. The award recognizes the efforts of Lenovo’s employees and partners who have worked to embed sustainable practices into its supply chain.

Supplier ESG Performance Evaluation

  • ESG performance with our top suppliers (typically 95 percent of our procurement spend) is quantified with 32 key indicators across RBA, Environmental Impact, Responsible Sourcing of Raw Materials, EcoVadis and Sustainability Reporting factors. For suppliers belonging in the remaining procurement spend, their ESG performance evaluation is based on their EcoVadis rating. ESG is then applied as an overall penalty/credit multiplier across the approximately 200 supplier report cards issued each quarter. Furthermore, we track the financial and business stability of over 300+ suppliers with two real-time risk-monitoring tools-D&B and CRM. Business stability is a strong leading indicator of sustainability programs.

Supplier Engagements

Lenovo offers and provides the following training programs to suppliers, in order to facilitate supplier capability building:
  • Semi-annual communications on the RBA, environmental impact, responsible sourcing of raw materials, key ISO certifications, ESG Reporting and Supplier Code of Conduct expectations.
  • Lenovo created education material for suppliers to learn its ESG requirements while providing an education session to 1,200 supplier attendees at 2022 Lenovo Standards and Certification Supplier Conference.
  • In FY 2022/23, Lenovo’s GSC ESG attended the procurement team’s quarterly business review (QBR) with 15 suppliers for one-on-one ESG guidance and education.
  • In FY 2022/23, five webinars for suppliers were held (including one with CDP, two with EcoVadis), covering topics including Lenovo Supplier ESG Requirements for Suppliers, CDP Disclosure Training, EcoVadis CSR Rating, and EcoVadis Post Assessment, and RBA Compliance. Total attendee numbers were 1,529.
  • For the specific Supplier Emission Reduction Program, Lenovo also held four webinars on the topics of energy and cost savings, renewable energy trading in China, Science Based Targets, and carbon credits.

Supplier ESG Awards

Five suppliers received the ESG award at the 2023 Supplier Conference. This is the second year that Lenovo awarded suppliers based on their ESG performance. The 5 suppliers are BOE, Celxpert, Darfon, LGES, and Simplo. Winners are supportive of Lenovo Procurement ESG Initiatives and are leading in ESG performance.
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