Lenovo Group (992) ESG Update summary

ESG strategy and governance

• ESG is deeply integrated into operations, with over 15 years of sustainability reporting, robust governance involving senior management, board oversight, and an ESG Executive Oversight Committee.

• ESG reporting aligns with GRI 2021 standards, Hong Kong Stock Exchange rules, and includes third-party verification of environmental data.

• Board diversity is prioritized, targeting 20% female representation and 75% independent members by FY 2025-26.

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

• Regular ESG updates are provided to the Board, with stakeholder engagement and ethical management of AI and privacy governed by dedicated frameworks and training.

Environmental initiatives and targets

• Committed to net-zero GHG emissions by 2050, with SBTi-validated targets to reduce absolute Scope 1, 2, and 3 emissions by 90% from a 2018-19 base year, neutralizing the remainder.

• Achieved a 20% year-on-year reduction in Scope 3 emissions in FY 2023-24; Scope 1 and 2 emissions also consistently reduced.

• By FY 2025-26, targets include 90% renewable electricity for operations and removal of 1 million tons of GHG from the supply chain.

• Over 94,000 metric tons of products recycled or reused in FY 2023-24; plastic-free packaging implemented for most ThinkPad notebooks.

• Energy efficiency improvements targeted for desktops, servers, notebooks, and Motorola products by FY 2029-30.

Social and diversity commitments

• 29% of technical roles are held by women; goal to grow women in executive roles to 27% and increase underrepresented groups by FY 2025-26.

• Inclusive design experts to vet 75% of products by FY 2025-26.

• Employee volunteerism grew 40% year-on-year; programs aim to impact 15 million lives and transform 1 million lives by FY 2025-26.

• Commitment to upholding human rights and labor practices as a Responsible Business Alliance member.

• Launched AI for Social Impact Webinar Series to promote digital inclusion.