Month: June 2023

Lenovo has increased its investment in renewable energy, tripling its solar energy generation since FY 2018/19.Lenovo’s early adoption of science-based targets resulted in its inclusion in the first group of companies to have both its near-term 2030 targets and 2050 net-zero targets validated by the Science Based Targets initiative.Lenovo’s global philanthropy efforts have grown again this year, resulting in more than US$30M in charitable impact for communities around the world (investments of funds, product, and estimate of volunteer time) and impacting more than 16 million lives.Lenovo’s global supply chain increased its ranking this year, reaching #8 in Gartner’s Top 25 Global Supply Chains. 

June 27, 2023 /3BL/ – Today, Lenovo (HKSE: 992) (ADR: LNVGY) published its 17th annual Environmental, Social and Governance (ESG) Report, further demonstrating its commitment to being a responsible corporation around the world with a focus on building a sustainable planet, promoting inclusion, and closing the digital divide. In the new report, the global technology powerhouse reported its increased investment in solar energy, tripling generation since FY 2018/19 driven by solar energy installations at factories and offices around the world. The company also increased its philanthropic investment, measuring nearly US$30M in philanthropic investments resulting in more than 16 million people impacted through global programs and partnerships.

“As a global company, we have seen the impact of climate change on our stakeholders and feel the urgency to combat it together” said Yuanqing Yang, Lenovo’s CEO and Chairman. “In the last fiscal year, we were proud to affirm our commitment to reaching net-zero emissions by 2050 with net-zero targets validated by the Science Based Targets initiative (SBTi) and their first-of-its-kind Net-Zero Standard.”

Click to launch and explore an interactive map of Lenovo’s global ESG impacts.

Lenovo’s leadership in sustainability was bolstered this year when it became one of the first group of companies to have net-zero targets validated by the Science Based Targets initiative. The company is on-track to meet its near-term emissions reduction targets for 2030, including reducing Scope 1 and 2 greenhouse gas emissions by 50% and Scope 3 emissions intensities by 66.5% from purchased goods and services, 35% from sold products, and 25% from upstream transportation and distribution. Lenovo is collaborating with suppliers to reduce its Scope 3 (value chain) emissions, traditionally the largest category of emissions and the most difficult to track in a complex, global supply chain.

Lenovo is building on its tradition of holistic innovations that increase the sustainability of its products and services. In FY 2022/23 Lenovo continued its transition to a circular economy by continually increasing the number of products that integrate ‘closed loop’ recycled content that comes from end-of-life IT and electronics. Lenovo reported nearly 300 products (298) that included recycled plastic content from end-of-life IT and electronics. As an example, the ThinkPad X1 laptops launched at CES 2023 include up to 97% Post Consumer Content (PCC) plastic in the battery enclosure and up to 95% PCC plastic in the speaker enclosures and AC adapter.

Lenovo’s workforce is industry-leading1 in gender inclusion, with 37% women in its overall population and 28% women in technical roles. Lenovo’s efforts to advance women have been recognized through inclusion in the Bloomberg Gender-Equality Index for the fourth time as the company pursues its goal to reach 27% women executive representation by 2025 (current 21%). Lenovo’s values of diversity and inclusion are practiced through 17 employee-led resource groups in offices and regions around the world. The groups are customized for the unique needs across a location’s diversity segments, with specific groups for today’s workforce, from early career talents (Rising Employees At Lenovo) to groups supporting parents in the workplace and career development for people from underrepresented backgrounds. Lenovo’s workforce inclusion initiatives have been recognized by Forbes, the Disability Inclusion Index, and the Human Rights Campaign’s Corporate Equality Index.

In FY 2022/23, Lenovo’s global philanthropy efforts driven by the Lenovo Foundation grew year-on-year, resulting in more than US$30M in charitable impact for communities around the world (investments of funds, product, and estimate of volunteer time). The Foundation’s focus has been on empowering underrepresented populations by helping them access technology and STEM education through strategic partnerships, programs like the TransforMe Skilling Grant Round, and employee volunteerism like the Love on Month of Service.

While Lenovo continues its journey to net-zero and works toward more inclusive workplaces and communities, the company is focused on governing its global operations with the highest standards of ethics and compliance. Lenovo’s global supply chain increased its ranking this year, reaching #8 in Gartner’s Top 25 Global Supply Chains. Furthermore, Lenovo’s ESG programs have been recognized by CDP (Carbon Disclosure Project), MSCI (Morgan Stanley Capital International), and the Hong Kong Institute of Certified Public Accountants.

This is Lenovo’s 17th annual ESG Report, covering the Fiscal Year 2022/23 (April 1, 2022 through March 31, 2023).

To find out more about Lenovo’s ESG global and local impacts, explore the interactive map here.

About Lenovo:

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$62 billion revenue global technology powerhouse, ranked #171 in the Fortune Global 500, employing 77,000 people around the world, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver smarter technology for all, Lenovo has built on its success as the world’s largest PC company by further expanding into growth areas that fuel the advancement of ‘New IT’ technologies (client, edge, cloud, network, and intelligence) including server, storage, mobile, software, solutions, and services. This transformation together with Lenovo’s world-changing innovation is building a more inclusive, trustworthy, and smarter future for everyone, everywhere. To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.

1As determined by internal competitive benchmarking within the technology industry.

They are increasingly aware of the impact of their own purchasing decisions, and are calling for radical transparency on the value chains of the companies they support, the products they buy, and the events they attend.

As a result, businesses face pressure to transparently communicate the climate impact of their products and events, but also their own corporate climate journey. But with the right strategy, companies can address the needs of their most important stakeholders, their clients, protect their reputation, and unlock a host of other business benefits.

Putting true climate impact front and centre for all to see

One powerful way for companies to communicate about their climate action is through the use of climate labels. Credible labels provide instant and full transparency to the customer, spelling out the steps that the company has taken to reduce their emissions and the global climate action projects they have supported. Solutions like these provide customers with the relevant details they need to make more informed decisions, and to utilise their purchasing power to make a difference.

While the consumer push for transparency around corporate climate efforts is clear, many companies are still failing to prioritise sustainability. However, the businesses that do address their customers’ expectations can benefit from:

Enhanced consumer trust
Instant and full transparency can enhance consumer trust and lead to customer loyalty and customer referrals. Consumer research on the Funding Climate Action label by South Pole found that 78% of respondents trusted that credible climate-preservation efforts had been taken when viewing the label (conducted in December 2022 with 1,500 participants across Europe and the US).Differentiating themselves from competitors
Climate labels can help companies to differentiate themselves from their competitors by showcasing their commitment to sustainability – beyond compliance. A visible commitment to climate action can attract new customers who actively look for companies who share their values.Boosted engagement and sales
Companies can embed climate action into their brand image and reputation which in turn boosts engagement and sales. In a recent survey it was reported that 69% of companies captured more financial value than expected from climate initiatives alone.

The call for a new claim: funding climate action

The rise in the number of green claims of climate action, the lack of universally accepted definitions, and in some cases, poor substantiation have made it difficult for customers to understand what ‘green’ claims really mean. Despite the term “climate neutral” having inspired thousands of companies to act for the climate as part of a 20-year global success story, the category has been misused by certain actors and led to allegations of greenwashing and widespread consumer confusion and mistrust. Consumer protection agencies are now calling for viable alternatives as well as more increased transparency around green claims more generally.

To effectively respond to the evolving landscape while maintaining the highest standards of credibility, South Pole has developed a new actionable vision of a climate funding claim that is aligned with the Paris Agreement, and that builds on the SBTi’s beyond value chain mitigation guidance. The claim “Funding Climate Action” can be used by companies to demonstrate that they are contributing to climate action beyond their value chain through high-quality certified mitigation contributions, in line with their residual carbon emissions.

The Funding Climate Action label
To empower companies to communicate their ‘Funding Climate Action’ claim effectively, with maximum transparency, South Pole has developed The Funding Climate Action label. The label indicates that an organisation has successfully passed a comprehensive, verified process to ensure credible climate action. Organisations display this climate action directly to their stakeholders via a bespoke QR code and personalised landing page that provides detailed information on the organisation’s climate action within and beyond their value chain. This level of detail and transparency enables companies to communicate their sustainability goals and related progress more effectively.

The Funding Climate Action label by South Pole has passed consumer tests on transparency and desirability* with flying colours:

84% of consumers are more likely to purchase a product with the Funding Climate Action label83% feel well informed by the label’s landing page82% understand the label’s meaning immediately

Transparency in corporate climate action is critical in tracking our collective progress towards global net zero emissions and a world where climate change is no longer a threat to life on earth. When corporate emission reduction plans are under scrutiny, it pushes corporate sustainability teams to pursue the best possible solutions for reducing a company’s overall emissions.

Companies working to transition to net zero emissions have a responsibility to communicate their plan to the public with honesty and clarity, and a strong incentive to address the growing consumer demand on transparency and more informed purchase decisions. South Pole’s new Funding Climate Action label allows them to do exactly that.

* Research conducted in December 2022 with 1,500 participants across Europe and the US