Lenovo Group Limited · HKEX:992
Lenovo — ESG Presentation (July 2023)
28 slides from Lenovo's sustainability presentation, July 2023
Slide 1: ESG Update
ESG Update July 2023 2023 Lenovo Internal. All rights reserved.
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements”, which are statements that refer to the expectations and plans for the future and include, without limitation, statements regarding Lenovo’s future results of operations, financial condition or business prospects as well as other sta
Slide 3: Today's Presenters
Today’s Presenters Treasury and Investor Relations Hugh Wu Jenny Lai Ser Mein Koh Keith Wong Vice President & Treasurer Vice President, Investor Relations Director, Insurance and Treasury Operations Director, Treasury ESG and Company Secretary Laura Quatela Mary Jacques Calvin Crosslin Tracy Lam Rit
Slide 4: Lenovo at a Glance
Lenovo at a Glance Global technology powerhouse serving millions of customers every day in 180 markets 2023 Lenovo Internal. All rights reserved. 4 Classification : Confidential
Slide 5: Overview of Lenovo's Businesses
Overview of Lenovo’s Businesses Group mission: To lead and enable intelligent transformation SSG Solutions & Services Group ISG Infrastructure Solutions Group IDG Intelligent Devices Group • New growth engine • #1 in Top 500 HPC1 • #1 global leader in with high profitability • #3 by worldwide PC3 •
Slide 6: Lenovo's ESG Material Topics
Lenovo’s ESG Material Topics 2023 Lenovo Internal. All rights reserved. 6 Classification : Confidential
Slide 7: Our ESG Vision
Our ESG Vision • Net Zero: Science based emissions reduction targets for near term and long term net-zero validated by SBTi (base year: FY2018/19, target year: FY2029/30) Reduce absolute Scope 1 + Scope 2 GHG Reduce Scope 3 GHG emissions from use of Reduce Scope 3 GHG emissions from Reduce Scope 3 G
Slide 8: Our ESG Approach
Our ESG Approach • Robust ESG governance structure to oversee the ESG strategy and progress: – Chief Legal & Corporate Responsibility Officer: Executive leadership for the Company’s ESG function – ESG Executive Oversight Committee: Strategic direction and coordination of ESG efforts – The Board of D
Slide 9: Our Governance
Our Governance • Strong independent element on the Board – Over 70% independent non-executive directors (INEDs) for the Board and Board Committees • Lead Independent Director – Serves as (i) Chairman of the Board / Nomination and Governance Committee (NGC) meeting(s) when considering the combined ro
Slide 10: Our Governance
Our Governance Continuous professional development program, among others, for directors and management of the Company to refresh their knowledge and skills: • Board activities – Lenovo Tech World – Global Leadership Team annual meeting – Site visit – Industry congress • Experts briefings and seminar
Slide 11: Key ESG Update
Key ESG Update Recognized by CDP as Leader2 Among the first 139 companies in Climate Change, Water Expanded the use of CL PCC with net-zero targets validated by Security, Supplier Engagement plastic to 298 products3 SBTi1 Environmental for two consecutive years Aided 16.5 million people Recognized b
Slide 12: Progress on Climate Action
Progress on Climate Action Lenovo’s GHG Emissions Lenovo’s GHG Emissions • Purchased goods and services • Transportation and distribution • Capital goods • Processing of sold products • Fuel and energy related • Use of sold products activities not included in Scope • End-of-life treatment of sold 1
Slide 13: Lenovo's Commitment: Net-Zero GHG Emissions by 2050
Lenovo’s Commitment: Net-Zero GHG Emissions by 2050 Lenovo is an early adopter of the science-based emissions reduction approach First PC and smartphone maker, and one of the first 139 companies in the world, to establish a net-zero target validated by SBTi Near-term 2030 emissions reduction targets
Slide 14: Lenovo's Near Term Targets
Lenovo’s Near Term Targets Near-term Targets Roadmap Reduce absolute Scope 1 + Scope 2 Hierarchical combination of energy efficiency, on-site renewable energy GHG emissions (related to Lenovo’s generation, and renewable energy commodities operations) by 50% Reduce Scope 3 GHG emissions (value chain)
Slide 15: Sustainability Throughout Entire Value Chain
Sustainability Throughout Entire Value Chain Type KPI UNGC SDG • By FY2025/26, 90% of our global operations’ electricity will be obtained from renewable sources.1 • By FY2025/26, we will remove one million tons of greenhouse gas emissions from our supply Climate chain.2 change • By FY2029/30, we wil
Slide 16: Sustainability Throughout Entire Value Chain
Sustainability Throughout Entire Value Chain Type KPI UNGC SDG • By FY 2025/26, we will grow the global representation of women in executive roles to 27% (from Diversity 21% in 2020) • By FY 2025/26, we will grow the representation of executives in the US from historically and underrepresented ethni
Slide 17: Sustainability Throughout Entire Value Chain
Sustainability Throughout Entire Value Chain Type KPI UNGC SDG • We continue to hold regular ESG Executive Oversight Committee meetings to include the interests of the business in ESG strategy discussions, assess the progress of our ESG initiatives, and Corporate evaluate the continued relevancy of
Slide 18: ESG Highlights
ESG Highlights Renewable Energy Energy Efficiency • Renewable energy installations help to reduce Scope 2 • Continue to improve operational efficiency via the upgrade emissions at our facilities of HVAC systems, insulations, server room energy • As of FY22/23, our onsite solar capacity is 17 MW with
Slide 19: ESG Highlights (cont)
ESG Highlights (cont) Low Carbon Circular Economy • LTS technology given away to support industry low carbon • PELM program increases the reuse and recycling of transition; 18 suppliers using LTS to produce memory, products and parts and reduces use of landfill; covers fingerprint readers, and other
Slide 20: ESG Highlights (cont)
ESG Highlights (cont) Supply Chain • All production suppliers are required to comply with the Company’s Supplier Code of Conduct and encouraged to comply with RBA Code of Conduct • Continue to push suppliers to commit to RBA Validated Audit Program (VAP) and Factory of Choice (FOC) designations. In
Slide 21: ESG Highlights (cont)
ESG Highlights (cont) Human Rights Diversity & Inclusion (D&I) • Principles of the UN Global Compact and UN Declaration • Since 2018, the D&I Board drives the initiatives to focus on of Human Rights is adhered by all of Lenovo’s suppliers building inclusive behaviors, foster diverse and inclusive •
Slide 22: Industry Recognition for our ESG Performance and Commitment
Industry Recognition for our ESG Performance and Commitment Lenovo ranks well on a number of external ESG ratings External ESG Ratings Awards and Recognitions 2022 Hang Seng Corporate Sustainability Index “AA+” Rating 2023 ranked 8th in Gartner Top 25 Supply Chain Ranking (Highest in IT industry) 20
Slide 23: External ESG Rating Track Record
External ESG Rating Track Record MSCI ESG Rating Sustainalytics Risk Rating • In Dec 2022, MSCI ESG rating has been upgraded to • The company's overall exposure moderately above AAA from AA, indicating a 1-notch improvement of ESG subindustry average. Human Capital, Data Privacy and performance and
Slide 24: Green Finance Framework – Overview
Green Finance Framework – Overview Green Finance Framework was established in July 2022 Positive contribution to: In alignment with ICMA Green Bond Principles 2021: Process for Project Management of Use of Proceeds Reporting Evaluation and Selection Proceeds • The proceeds will be used • Eligible gr
Slide 25: Green Finance Framework – Eligible Projects
Green Finance Framework – Eligible Projects • Investments and expenditure related to energy efficiency features, upgrades and retrofitting that result in improved energy efficiency, such as installation of low energy lighting and related electrical equipment • Investments and expenditure related to
Slide 26: Green Finance Framework – Project Evaluation and Selection
Green Finance Framework – Project Evaluation and Selection Green Finance Working Group (GFWG) Project Evaluation and Selection • Responsible for: • Identify Potential Eligible Green Assets – Management of the Framework Identification • Finance Team coordinates and prepares – Compliance of all financ
Slide 27: 2022 Green Bond Post Issuance Report
2022 Green Bond Post Issuance Report 2022 Green Bond Details Allocation Reporting Impact Reporting • • • Post Issuance External Review 2023 Lenovo Internal. All rights reserved. 27 Classification : Confidential
Slide 28: Smarter technology thanks.
Smarter technology thanks. Lenovo