Combating Climate Change: Supply Chain

Suppliers

EICC logoLenovo continues to fully implement the Electronics Industry Citizenship Coalition’s environmental reporting tool or the CDP reporting tool for Tier 1 suppliers (suppliers choose). Based on our suppliers’ Scope 1 and 2 GHG emissions reported for 2015, it was estimated that Lenovo’s 85 key suppliers representing 95% of direct spend accounted for over 2,054,900 MT CO2e allocated emissions. During the reporting period, 92% of our procurement spend had specific GHG reduction targets/goals which were achieved via implementing energy efficiency projects and/or renewable energy projects. However, due to adding new suppliers from our acquired businesses, moving volume to higher emission suppliers and getting more allocation of suppliers’ emissions, Lenovo’s overall emissions from purchased goods and services increased.

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. We are targeting 95% spend coverage in public reduction goals and third-party verification. We are tracking and reporting supplier performance to these goals with the aim of increasing volumes to leading companies and reducing volumes to suppliers who are not performing.

We established two specific objectives for FY 2017/18. The first one is a requirement of climate change reduction targets for at least 75% of Lenovo direct suppliers by spend, and the second one is to strengthen environmental criteria in Lenovo’s sustainability scorecard for our suppliers year to year.

Lenovo meets with its primary suppliers and shares strategies and requirements. Lenovo held a Supplier Standard and Certification Summit featuring a theme of “Building a Safe & Sustainable Supply Chain” for almost 300 suppliers in Wuzhen, China, in August, 2017. The purpose of the conference was to discuss the Internet of Things, global market access, environmental design, zero waste, sustainable data management and chemical compliance. Among other topics, suppliers learned about our commitment to reducing GHG emissions in our supply chain and their vital role in that effort.

Click here for additional information about Lenovo’s supplier carbon emissions and reporting.

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.

The Global Logistics team proactively promotes rail transportation for shipments from China to Europe and has shipped over 600 containers to Europe by rail. 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.

Lenovo Global Logistics continued to launch a series of pallet optimization projects to reduce CO2 emissions associated with logistics. These included:

  • A project to recycle inbound pallets for use in outbound loose carton air shipments at the Lenovo Shenzhen plant. This project is estimated to reduce approximately 480 MT CO2 annually.
  • The Lenovo logistics team worked with Lenovo’s R&D team to develop a new, lighter-weight pallet for air shipments which weighs approximately 9.8kg. This pallet was implemented at the Lenovo Shenzhen plant in March 2016. By September 2016, this project was expanded to all Lenovo ODM sites. This initiative achieves a carbon emissions reduction of approximately 6,595 MT CO2e per year.
  • In May 2016, Lenovo completed a switch from wooden pallets to light plywood pallets for its China mobile manufacturers. This switch yields a carbon emissions reduction of 4,160 MT CO2e yearly.

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.

Lenovo was recognized as a Green Shipper in China during the 3rd China Green Freight Initiative Annual Meeting that was held in July 2014 in Beijing. 

In 2015, Lenovo received the GFA Label Leaf Level ONE that recognizes Lenovo’s Green Road Freight practices as a shipper.

 

Lenovo is also an approved U.S. EPA SmartWay partner.

Lenovo continued collecting and calculating product transportation emissions data using DHL’s carbon data dashboard. International and domestic China air, ocean, road and rail transportation emissions were estimated based on shipment data received from Lenovo’s key carriers representing a 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) investigate the correlation of costs and emissions, (3) review shipment comparison metrics such as fill rate and density and (4) examine downstream transportation and distribution emissions more closely.

During FY 2016/17 we accomplished the following:

  • Streamlining the collection of logistics data by leveraging our online platform rather than collecting information manually from carriers via spreadsheets.
  • Extending our carbon dashboard to China domestic transportation, monitoring performance and identifying opportunities for improvement.
  • Engaging with key carriers to ensure they have effective sustainability programs in place.

We established two specific objectives for FY 2017/18. The first is engagement with global transportation carriers to ensure they have climate change reduction targets and/or programs, and the second is to conduct a transportation GHG emissions assessment against the Global Logistics Emissions Council framework.