Lenovo Sustainability

Combatting Climate Change: Supply Chain

Supplier GHG Emissions

We take great effort to eliminate climate change risk in our supply chain through responsible partners and program coverage. To that end, we are proud to be members of the Responsible Business Alliance (RBA), the world’s largest industry coalition dedicated to electronics supply chain responsibility, and the CDP, a voluntary organization that aims to mitigate the dangerous impacts of climate change.

For our top Tier 1 suppliers, Lenovo implements the Responsible Business Alliance’s (RBA) Environmental Reporting Initiative or the CDP reporting tool. Based on our suppliers’ Scope 1 and 2 GHG emissions reported for FY 2018/19 2019/20, we estimated that the emissions allocated to Lenovo from 90% of our direct spend (59 key suppliers) were approximately 2,341,000,000 MT CO2e.

Lenovo’s FY 2019/20 Supplier GHG Emissions (Scope 3) received 3rd Party Verification from Bureau Veritas.

Responsible Business Alliance DCP: Disclosure Insight Action

Lenovo received a score of A on the 2019 CDP Supply Chain survey reaching the Leadership Level in Supplier Engagement Rating

In FY 2018/19:

85%

of our suppliers have public GHG reduction goals and third-party verification

of our suppliers have public GHG reduction goals and third-party verification

95%

of our procurement spend is surveyed/tracked annually

of our procurement spend is surveyed/tracked annually

83%

of our suppliers by spend formally reports to CDP

of our suppliers by spend formally reports to CDP

 
All of Lenovo’s key procurement personnel are trained semi-annually on sustainability concerns. In 2019, Lenovo received an ‘A’ score on the CDP Supplier Leadership Engagement Rating. CDP assesses performance on supplier engagement using the company’s response to selected questions on governance, targets, Scope 3 emissions, and value chain engagement in the CDP climate change questionnaire. CDP’s recognition demonstrates Lenovo’s effectiveness in engaging our suppliers on climate change.

Overall performance and targets

Lenovo has established and communicated formal quantitative and performance goals to suppliers to increase transparency and reduce environmental impact. Specifically, we

Seek better than 3% annual absolute reductions in emissions/water/waste from our suppliers for top ratings.
Target 95% spend coverage in public reduction goals and third-party verification.
Track and report supplier performance to these goals with the aim of increasing volumes to leading companies and reducing volumes to suppliers who are not performing.

For FY 2019/20, we established three specific objectives.

  • The first one is a requirement of climate change reduction targets for at least 85% of Lenovo direct suppliers by spend. 
  • The second one is to reduce supplier emission intensity 25% by 2030 relative to a 2020 base year.
  • The third one is to strengthen environmental criteria in Lenovo’s sustainability scorecard for our suppliers year to year.

We regularly meet with our primary suppliers and share strategies and requirements. For instance, we organized a Supplier Standard and Certification Summit featuring a theme of “Building a Safe & Sustainable Supply Chain” for almost 300 suppliers in Wuzhen, China. Among other topics, suppliers learned about our commitment to reducing GHG emissions in our supply chain and their vital role in that effort.

Transportation

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. 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.

Lenovo is compliant to the EN 16258 methodology for calculation and declaration of energy consumption and GHG emissions of transport services (freight and passengers), and we are early adopters of the GLEC -- Global Logistics Emissions Council Framework. It is our goal to reduce the transportation emission intensity 25% by FY 2029/30, relative to the base year of FY 2018/2019.The Global Logistics team proactively promotes rail transportation for shipments from China to Europe. We also drive ocean-transport consolidation opportunities to reduce the number of containers shipped out of China manufacturing sites with the goal of reducing carbon emissions.

In FY 2019/20 our Global Logistics team achievements included

>
18%

increase in the number of containers shipped by rail from China to Europe compared with FY 2019/20

During FY 2019/20, Lenovo Global Logistics continued to launch a series of pallet optimization projects to reduce CO2 emissions associated with logistics. These included:

↓ 480 MT CO2

By recycling inbound pallets for use in outbound loose carton air shipments at our Shenzhen plant.

↓ 6,595 MT CO2e

By developing a new, lighter 9.8kg pallet for air shipments.

↓ 4,160 MT CO2e

By switching from wooden pallets to light plywood pallets for our China mobile manufacturers.

Green Feight Asia

Lenovo is a founding board member of the Green Freight Asia Network. This nonprofit 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 their website for further information

In January 2020, Lenovo China was the first shipper to ever earn the 3-Leaf Certification by GFA, and Lenovo India earned the 2-Leaf Certification.

Green Freight China Certificate

Green Freight India Certificate

Lenovo is also an approved partner of the U.S. EPA SmartWay program, whose mission is to protect human health and the environment. SmartWay helps Lenovo demonstrate its commitment to reducing the environmental impacts of freight transportation. In December 2019, Lenovo was recognized as a SmartWay 2019 High Performer.

SmartWay High Performer Certificate

Lenovo uses the GLEC Framework and partners with EcoTransit to calculate and report emissions from product transportation in its ESG report and to CDP. The reporting scope includes all international air, ocean and rail transportation globally as well as domestic transportation.

GLEC Certificate