Lenovo works internally to improve the energy efficiency of our operations. During FY 2012/13 Lenovo implemented 11 new energy efficiency projects in addition to the 50 plus that were implemented in the previous 3 years. These new projects will contribute approximately $116,000 in savings and reduce energy consumption by 2,000 MWh annually. We are now working with external partners to identify further opportunities to reduce energy use and GHG emissions.
Some examples of implemented energy savings activities are:
- • Installation of low energy lighting and related electrical equipment,
- • Energy efficiency improvements to HVAC system and chillers,
- • Eliminating or improving usage of transformers and air compressors,
- • Manufacturing area optimization-integrating and modifying assembly lines,
- • Reducing PC on-line testing time,
- • Building management adjustments that turn lights/HVAC on later in morning and off earlier in the afternoon,
- • Improving data centers energy efficiency,
- • Consolidation of operations,
- • Signs/training for turning lights, laptops off,
- • Reduction in the number of company operated vehicles,
- • Acquisition of ENERGY STAR® certification for Morrisville, NC buildings,
- • Achievement of LEED Commercial Interiors Gold Certification for a new office in Milan, Italy and
- • Summer Hours program.
Lenovo was selected for a pilot emission trading system in China. It was determined by Beijing Municipal authority in 2013 that Lenovo Beijing is a significant energy consumption enterprise and such must meet an emissions trading requirement and emissions reduction of 2% year to year for our Beijing sites. Lenovo is closely monitoring other provinces where this pilot program has been imposed since our sites in Shanghai, Shenzhen, Huiyang and Wuhan could be impacted in the future. The above implemented energy efficiency projects will help us meet the emissions reductions requirements. Additionally, Lenovo is working on establishing a comprehensive energy system for Beijing sites to minimize the amount of carbon emissions allowances we must purchase.
Lenovo also continues to minimize the use of packaging material consumption per box while driving the use of environmentally sustainable materials year by year, reduce transportation miles incurred and improve reuse of packaging and shipping materials. Actions all of which ultimately result in lower carbon emissions. Additionally it was estimated that Lenovo avoided in FY 2012/13 more than 27,050 MT CO2e thanks to recycling end-of-life electronic products.
Note 2: U.S. Environmental Protection Agency Waste Reduction Model (WARM, February 2012)’s emission factor of 2.35 MT CO2e per short ton was used for the estimate - http://www.epa.gov/climatechange/waste/calculators/Warm_home.html.
In an effort to minimize Lenovo’s climate change impact and reduce its carbon footprint, Lenovo uses local manufacturing facilities in the Americas, Europe and Asia, as well as the lowest carbon shipping methods via truck, rail or sea, where possible. Lenovo is working closely with its shipping partners to ship products responsibly and, in July 2008, was certified by the US EPA SmartWay program for implementing fuel efficient shipping standards. Lighter and smaller products, more compact and reusable packaging materials, bulk shipping alternatives, and regional distribution facilities allow for lighter loads, load consolidation and full truck load shipments. During 2009, Lenovo shifted 7 percent of notebooks from air transport to ocean transport to minimize environmental impacts related to shipping. In 2012 Lenovo has implemented Pallet Pooling project which will drive wooden pallet recycle and consumption reduction.
During FY 2012/13 Lenovo began collecting and calculating product transportation emissions data via using DHL carbon data dashboard. Emission from air and ocean international transport were estimated based on the shipment data received from 4 key Lenovo’s carriers which represented majority of worldwide global logistics spend. We have plans for future work in this area as follows: (1) expand emissions data collection to additional key suppliers, (2) include domestic transport to the inventory, and (3) look more closely into upstream transportation and distribution emissions.
In FY 2012/13 Lenovo has become a founding board member of the Green Freight Asia Network. This non-profit association’s goal is to promote and improve fuel efficient freight transport and decrease air pollution in Asia. Green Freight Asia was officially launched in October, 2013. Please visit www.greenfreightasia.org for further information.
Recognition and Awards
U.S. Environmental Protection Agency (EPA) recognizes Lenovo for green power purchase. In July 2013 Lenovo appeared for the first time on the U.S EPA’s Top 30 Tech & Telecom list of the largest green power purchasers. Lenovo is purchasing more than 35 million kWh of green power annually by buying renewable energy certificates from Sterling Planet and NextEra Energy Resources. According to the U.S. EPA, Lenovo's green power purchase of more than 35 million kWh is equivalent to avoiding the carbon dioxide (CO2) emissions of more than 5,000 passenger vehicles per year or the CO2 emissions from the electricity use of nearly 4,000 average American homes annually. Please click here for more information: www.epa.gov/greenpower/toplists.
Lenovo has been awarded the 2013 ET Carbon Ranking Leader Award on behalf of the Environmental Investment Organisation. Lenovo has been ranked third in the 2013 BRICS (Brazil, Russia, India, China and South Africa) 300 Carbon Ranking for greenhouse gas emissions reporting and disclosures. Please visit www.eio.org.uk for more detail.
Lenovo has been featured in “The Business Case for Carbon Measurement and Disclosure in China” (May 2013) report as one of the Chinese companies that recognize that responding to climate change has become a business imperative. Lenovo’s practices provide an example for other Chinese companies and their role to promote a low carbon future in China. Please see a full report here: The Business Case for Carbon Measurement and Disclosure in China.
Lenovo has committed to install local renewable energy generation sources where technically and economically feasible. Hot water solar system was implemented on some buildings in Chinese facilities (approximate energy generated of 69,000 kWh) and solar lamps were installed for parking lot lights in Beijing (approximate energy usage of 2,000 kWh per year).
During FY 2011/12 Lenovo committed to install solar panel arrays at the manufacturing site in Shanghai in conjunction with Chinese government “Golden Sun” program. The project was completed on June 25, 2012 and became operational during July 2012. It has capacity to generate 520 MWh per year, representing between 10-15% of site's annual electricity consumption and reducing GHG emissions by more than 400 MT CO2e yearly. This initiative demonstrates Lenovo's focus on increasing use of renewable energy as a percentage of total electricity use at Lenovo's sites. During a period of July 2012 to March 2013, the solar panels generated 209,835 kWh of solar energy that was use at the site and helped avoid approximately 173 MT CO2e. 
Note 3: Based on 2012 Baseline Emission Factors for Regional Power Grids in China.
Lenovo is pleased to purchase renewable energy to support our emission reduction commitments where actual direct energy reductions are not technically or economically feasible. Lenovo has contracted with NextEra Energy Resources to carbon balance a portion of its electricity and steam usage by purchasing Green-e Certified Renewable Energy Certificates (RECs) through the company’s innovative EarthEra program. Lenovo has initially committed to purchasing over 10 million kilowatt-hours of electricity per year for 3 years, which will help avoid over 19,000 metric tons of carbon dioxide. This is equivalent to greater than 15% of the carbon emissions associated with Lenovo’s total direct and indirect emissions during FY 2011/12. In addition, 100% of the proceeds from Lenovo’s purchase of RECs will be directed to the EarthEra Renewable Energy Trust and used by NextEra Energy Resources to build new renewable energy facilities in the United States.
Click here for the certificate of retired RECs: 2011, 2012 and 2013.
For more information about the EarthEra renewable energy and carbon offset programs, visit www.earthera.com.
Lenovo partnered with Climate Action and purchased a little over 5,450 carbon offsets from a renewable energy – biomass waste to energy - project to balance the carbon emissions associated with the purchased power for the new manufacturing facility in Chengdu, China in FY 2012/13.
Click the following link for the project details and information on its economic-social and environmental benefits: biomass waste to energy, and click here for the proof of retired carbon offsets: 2013
For more information about Climate Action and its commitment to deliver clean energy to China, visit http://www.climateaction2n.com/.
Lenovo contracted with Sterling Planet for the purchase of 4,000 carbon offsets that verify the reduction of 4,000 MT CO2e and 24,803 MWh of Green-e Energy certified RECs with an offset value of approximately 17,500 MT CO2e. Carbon offsets and RECs supported renewable energy projects such as wind, small hydro, biomass and methane abatement projects.
Click here for the certificate of retired RECs: 2013 and here for the certificate of retired carbon offsets: 2013.
For more information about Sterling Planet and its solutions for carbon mitigation, visit www.sterlingplanet.com
Energy Efficient Products
Lenovo’s historical and continued focus on product and operations energy efficiency provides a strong product differentiator in a market and regulatory environment that increasingly values these attributes. With a development process that places a premium on energy efficiency, an already outstanding offering of energy efficient IT products and internal processes in place to drive continued improvements in operational efficiency, Lenovo is well positioned to benefit from an increasing demand for energy efficient products with smaller carbon footprints.
Energy efficiency is a targeted attribute of the Lenovo product development process. Improvements in product energy efficiency are consistently part of our key environmental objectives and targets.
Lenovo PCs come with built-in energy-efficient tools and eco-friendly features that include:
- • For Win8 systems, the "Lenovo Settings" app - provides power management features for the user.
- • For other operating systems, Power Manager™ — helps optimize energy used by a running machine and saves up to 69 percent on energy consumption per desktop, per year.
- • Active Thermal Management — adjusts processor and fan speeds based on ambient levels.
- • Active Directory and LANDesk® — supports remote deployment of power schemes and global settings to allow administrators the ability to control and enforce ThinkPad® energy savings company-wide.
- • Cisco EnergyWise software application — allows Cisco networks to control and perform energy management and enables customers to monitor, control and report on the energy use of building equipment and IT devices using a Cisco EnergyWise enabled network.
- • Rack Planner — helps users better plan for rack efficiency by increasing rack density and calculating power consumption based on specific configurations.
- • Smart Grid — helps users monitor and manage power consumption and temperature of ThinkServer with Intel Node Manager. It can save power, increase rack density, and avoid Data Center hotspots.li>
- • PSU smart-on — when system detects that the power loading is low in redundant PSU configuration, system can transfer the loading from 2 PSU to 1 PSU to get higher power efficiency and save power.
Lenovo offers a full complement of ENERGY STAR® qualified notebooks, desktops, workstations, monitors and servers.
Click here for more information about Lenovo’s energy efficient products.
Measuring Product Efficiency
Lenovo recognizes that the existence of a universally accepted method for establishing product carbon footprint (PCF) will promote targeted product energy reduction actions and allow for product differentiation. To this end, Lenovo is engaged in the development of PCF protocols and tools with external partners.
Lenovo is engaged with other members of the information and communication technology (ICT) industry, academia and ENERGY STAR® in the development of a tool to simplify and expedite determination of the PCF for ICT products through the Product Attribute Impact Algorithm (PAIA) project. It is hoped that this work will move the industry towards a standard method for establishing PCF. Lenovo’s product development groups are currently in process of using PAIA notebook, desktop and monitor PCF calculation tool and engaged in development of a tool for all-in-ones and tablets.
Internally Lenovo continues to work on quantifying the lifetime impact of its products. The carbon footprint of Lenovo's products will help identify lifecycle areas where GHG emissions can be effectively reduced. An internal product carbon footprint calculation guidance has been developed to support quantifying the product life cycle GHG emissions of Lenovo's products. This document is written in accordance with ISO 14040 & 44 Environmental management – Life cycle assessment and consistent with Publicly Available Specification 2050, and Greenhouse Gas Protocol's Product Accounting & Reporting Standard. Each business unit must follow this guide in assessing the life cycle emissions of its products.
Lenovo has been actively involved in the following carbon footprint projects:
- • Product Carbon Footprint China Standard,
- • China ICT Product Life-Cycle Assessment Data Service Platform,
- • IEC Technical Report GHG Quantification Methodology for Computers,
- • China ICT Supporting Low Carbon Economy,
- • EICC Product Carbon Footprint Data Allocation Algorithm Development.
Due to its strong local presence in China, Lenovo is leading its advocacy efforts in PC+ China Energy Efficiency Standard, China Green PC Standard, and is active in the following energy efficiency-related workgroups, associations, and initiatives: China Environmental Labeling Program, Energy Saving Work Association of Chinese Institute of Electronics, and China Energy Conservation Program.
For more details on Lenovo’s PCF strategy and initial calculated PCF for a typical Lenovo notebook, desktop and monitor, please see the paper Lenovo’s Product Carbon Footprint Strategy.