Lenovo Group (992) ESG Update summary

ESG strategy and governance

• ESG is deeply integrated into operations, with a robust governance structure involving senior management and the board, including an ESG Executive Oversight Committee and regular board updates on ESG risk areas.

• Board diversity is prioritized, with 75% independent members and a target of 20% female representation by FY 2025-2026.

• Management compensation is closely tied to ESG achievements, with KPIs considered in performance reviews and compensation decisions.

• ESG policies include a supplier code of conduct, third-party audits, and training to uphold human rights and labor standards in the supply chain.

• Ethical AI practices are guided by a corporate policy ensuring fairness, transparency, privacy, and compliance, with oversight by a dedicated Chief Security and AI Officer.

Environmental initiatives and targets

• Committed to reducing absolute Scope 1, 2, and 3 greenhouse gas emissions by 90% by 2050, with near-term 2030 targets validated by SBTi.

• Achieved a 20% year-on-year reduction in Scope 3 emissions in FY 2023-2024, with ongoing energy efficiency and renewable energy initiatives.

• Targets include 90% renewable electricity for global operations and removal of 1 million tons of GHG emissions from the supply chain by FY 2025-2026.

• Circular economy efforts include recycling or reusing over 94,000 tons of products and implementing plastic-free packaging for most ThinkPad notebooks.

• Green finance framework supports eligible projects, with a $625 million green bond issued and proceeds allocated to LEED-certified buildings and renewable energy.

Social and diversity commitments

• Aims to grow global representation of women and underrepresented groups in executive roles by FY 2025-2026.

• 29% of technical roles are held by women, and 75% of products will be vetted by inclusive design experts.

• Employee volunteerism grew 40% year-on-year, and philanthropic initiatives aim to impact 15 million lives by FY 2025-2026.

• Human rights are upheld through supplier requirements, audits, and corrective action plans, with working hours and time off as key risk areas.