Lenovo ESG

Environmental Targets

FY 2023/24 Objectives and Targets

Product Aspects

Target Type	Objective	Target
Packaging	Minimize packaging material consumption while driving the use of environmentally sustainable materials.	Achieve 5% reduction in weight or volume for at least 1 product.
		Eliminate 100,000 km of single use plastic packaging tape by 2025 (starting from 2018).
		Accomplish plastic-free packaging on all Motorola Edge/ Razr family and select carriers of Moto in North America / Europe Union.
	Increase eco-friendly content of packaging.	Introduce Forest Management Certification (FSC) certification to all Infrastructure Solutions Group (ISG) corrugated parts.
		Introduce recycled plastic bag (made from 30% ocean bound recycle) to all ISG products.
		Identify five new Lenovo products for which to implement use of 100% renewable bio-based packaging.
		By FY 2025/26, 90% of PC products plastic packaging will be made from recycled materials.¹
		By FY 2025/26, 60% of smartphones products plastic packaging will be made from recycled materials.
		By FY 2025/26, smartphone packaging will use 50% less single-use plastics and reduce in size/volume by 10%.²
Product Energy	Drive reduction in product energy use.	Improved energy efficiency of the product.³
		Notebooks: Improve energy efficiency on average for comparable notebooks by 30% by March 31, 2030, relative to FY 2018/19.
		Desktops: Improve energy efficiency on average for comparable desktops by 50% by March 31, 2030, relative to FY 2018/19.
		Servers: Improve energy efficiency on average for comparable servers by 50% by March 31, 2030, relative to FY 2018/19.
		MBG products: Improve energy efficiency on average for comparable MBG products by 30% by March 31, 2030, relative to FY 2020/21.
	Drive product emissions reductions from use of sold products.	Reduce Scope 3 GHG emissions (value chain) from use of sold products ~35% on average for comparable products by FY 2029/30 from a FY 2018/19 base year.
	Quantify lifecycle CO₂e emissions and environmental footprints associated with the use of Lenovo products.	Ensure product carbon footprint is published for all new Lenovo products.⁴
		Optimize Lenovo Life-Cycle Assessment (LCA) platform, study and phase-in LCA solutions before March 31, 2024.⁵
		Perform LCA (life-cycle assessment) for at least ten Lenovo selected products and materials/technologies by March 31, 2023.⁶
Product Materials ^{7, 8, 9}	All products across all business units shall contain some Recycled Material.	By FY 2025/26, 100% of PC products will contain postconsumer recycled content materials.¹⁰
		By FY 2025/26, we will use 300 million pounds of postconsumer recycled content plastics in our products.¹¹
		From April 1, 2023, at least one product needs to meet higher PCC levels for new products: DT/Workstation 35%, AIO 40%, NB 10%, Tablet 5%, Visual 50%, Servers 10% and Smartphones 25%.
		Explore innovative applications and programs for lower environmental impact (e.g., recycled material LCA/PCF, post-consumer recycled metal, high % PCC material, recycled rare earth elements).
	Monitor and respond to market requirements in this area to maintain portfolio relative to low halogen parts.	For products requiring IEEE 1680.1 or NSF/ANSI 426 registration, ensure each plastic part in the product exceeding 25 g shall not contain greater than 1000 ppm chlorine or greater than 1000 ppm bromine at the homogeneous level per the requirements and exceptions allowed in the IEEE 1680.1 or NSF/ANSI 426 standard.
		For products¹² requiring TCO 9 certification, the power PCB laminate of the internal/external power supply unit must not contain intentionally added (additive or reactive) flame retardants or plasticizers with halogenated substances.
		By FY 2025/26, 100% of smartphone products and accessories will be free of PVC and BFR.¹³

Location Aspects

Target Type	Objective	Target
Site Air Emissions	Absolute reduction in CO₂e emissions from Lenovo operations worldwide.	Reduce absolute Scope 1 and 2 GHG emissions 50% by FY 2029/30 from a FY 2018/19 base year.¹⁴
Site Energy Consumption	Maximize energy efficiency and minimize CO₂e emissions associated with the development, manufacturing and delivery of Lenovo products.	By FY 2025/26, 90% of our global operations’ electricity will be obtained from renewable sources.¹⁵
		Achieve year-over-year (YTY) improved energy intensity¹⁶ index at manufacturing sites¹⁷, relative to the previous FY.
		Achieve YTY improved electricity intensity¹⁸ at R&D and office sites¹⁹ globally, relative to the previous FY.
		Explore on-site installation of renewable energy sources at Lenovo facilities.
Waste Management	Minimize environmental impacts associated with solid waste generated from Lenovo operations and products.	Maintain a global nonhazardous waste recycling rate > 90% (+/-5%).
Water Management	Minimize environmental impacts associated with water withdrawal and water discharge from Lenovo operations and products.	Maintain per person water withdrawal at sites globally, relative to the previous FY (no more than 5% increase).
Water Management

Supply Chain Aspects

Target Type	Objective	Target
Product End-of-Life Management	Minimize the environmental impact of Lenovo products at end of life.	By FY 2025/26, we will have enabled the recycling and reuse of 800 million pounds (362,874 MT) of end-of-life products.¹⁹
		By FY 2025/26, 84% of repairs can be done at the customer site, without having to send their PC to a service center.²⁰
		By FY 2025/26, 76% of repairable PC parts returned to each service center will be repaired for future use.²¹
Supplier Environmental Performance	Monitor and mitigate environmental impact in the Lenovo supply chain, and drive to improve suppliers' environmental management.	By FY 2025/26, we will remove one million tons of greenhouse gas emissions from our supply chain.
		Reduce Scope 3 GHG emissions (supply chain) from purchased goods and services 66.5% per million US$ gross profit.
		Engage 15 product suppliers to source 1/3 of energy from renewable sources for Lenovo related business.
		Achieve Lenovo product supplier response rate to CDP questionnaires at the following levels based on procurement spend: Climate Change =95%.
		Achieve 48% of Lenovo product suppliers based on procurement spend to commit/have science-based emission reduction targets.
Transportation	Drive collaborative environmental efforts in Lenovo’s global logistics.	Enable modes of transport (MOT) shift initiatives in three geos (IDG) and ISG shipments (AG, CN, EMEA and ISG).
		Improve fleet and utilization rate in three geos (IDG) and ISG shipments (AP, EMEA, AG and ISG).
		Explore low emission energy opportunities in three geos (IDG) shipments (AP, CN and EMEA).
		Reduce Scope 3 GHG emissions from upstream transportation and distribution 25% per tonne-km of transported product by FY 2029/30 from a FY 2018/19 base year.

Footnotes:

1. Measured by weight and excludes tablets, accessories and monitors.
2. Relative to FY 2020/21 and excludes RAZR and Lenovo smartphone packaging.
3. If new products don’t fall in one of the sub-categories in the listed sub-targets, they default to the general energy efficiency improvement relative to the previous generation of the product. An exemption from targets in this area may be requested where the BU can clearly demonstrate achieving the target places the Lenovo product at a large price disadvantage against its competition or is not technically feasible.
4. For products for which a PAIA online tool exists (PAIA web platform). If requested by GEO sales or/and customers, provide a tailored PCF evaluation based on the specific product configuration.
5. Collaboration with 30+ key suppliers.
6. Desktops, commercial notebooks, servers, visuals and accessories as appropriate.
7. Availability of recycled content can be determined through consultation with environmental affairs and/or suppliers on the Lenovo Approved PCC Supplier list.
8. To drive increased usage of PCC, all BUs shall include a requirement for the identification of applications for the use of PCC in MRD and RFI/RFQ.
9. PCC percentage is calculated using EPEAT methodology.
10. Excludes tablets and accessories.
11. Cumulative total since 2005.
12. Exempted are all other parts, such as electronic components, other PCB laminates and all kinds of cable insulation. The concentration of bromine and chlorine shall be less than 0.1%.
13. Controlled at 1000 ppm.
14. This goal may be accomplished through energy efficiency, installation of onsite renewable generation, entry into power purchase agreements (PPA) with power providers, and/or the purchase of renewable energy commodities.
15. May be accomplished through installation of onsite renewable energy generation, entry into power purchase agreements (PPA) with power providers and /or the purchase of renewable energy credits.
16. Energy intensity index is energy consumption in kWh per production volume.
17. At a minimum, the target includes sites in EMS scope. This target does not cover manufacturing sites that are still in pilot production phase.
18. Electricity intensity is electricity consumption in kWh per person (defined in UL360).
19. Cumulative total since 2005.
20. Excludes Android tablets and visuals.
21. Measured by value.

Lenovo ESG

Environmental Targets

FY 2023/24 Objectives and Targets

Product Aspects

Packaging

Product Energy

Product Materials 7, 8, 9

Location Aspects

Site Air Emissions

Site Energy Consumption

Waste Management

Water Management

Supply Chain Aspects

Product End-of-Life Management

Supplier Environmental Performance

Transportation

Footnotes:

Product Materials ^{7, 8, 9}