Published 01-15-25
Submitted by Lenovo
Originally published in Lenovo's 2023/24 ESG Report
Under the EMS, energy-related targets are set annually. Since decreased energy use or increased renewable energy use impacts emissions, these energy-related targets are related to Lenovo’s Scope 1 and 2 emissions reduction targets and similar actions are taken to achieve all three types of targets. For Lenovo’s specific energy targets and its performance against them see Section 8.0.
By FY 2025/26, 90% of our global operations’ electricity will be obtained from renewable sources. 2
Energy consumption also occurs throughout Lenovo’s value chain. Energy is used by Lenovo’s suppliers and its supply chain is encouraged to develop energy targets, use renewable energy, and report energy usage. Customers also use energy to power products and Lenovo has set targets to improve energy efficiency in many of its products.
For more information, see Section 9.0 for Lenovo’s energy-related KPIs.
Renewable energy
Lenovo’s renewable energy installations help to reduce Scope 2 emissions at its facilities. In July 2023, Lenovo enabled additional 3 MW solar electric at a factory in Hefei, China, increasing this location’s total solar generation capacity to 10.1 MW. Moreover, the LSSC site in Shenzhen, China, and TJSC site in Tianjin, China, added new 2.3 MW and 4.02 MW solar installations, respectively, in FY2023/24. Lenovo’s total solar generation capacity increased 48% compared to last fiscal year.
In addition to the 25.12 MW of solar electric that are currently operational, Lenovo continues to investigate additional opportunities for solar installations in China and other locations including Brazil and Mexico.
In addition to onsite solar generation capacity, Lenovo is proactively looking for opportunities for sourcing renewable electricity directly from utility suppliers. The TJSC campus in Tianjin, China, has signed a purchase agreement with a local utility supplier to provide 100 percent renewable electricity for its manufacturing and distribution area starting in January 2024. The Green Electricity Certificates documenting this renewable electricity are provided semiannually based on actual electricity consumption.
Where the use of onsite renewable energy sources is not technically or economically feasible, Lenovo chooses to purchase Renewable Energy Credits (REC), International Renewable Energy Credits (I-REC), Guarantees of Origin (GO), and Non-fossil certificates (NFCs). In FY 2023/24, Lenovo purchased renewable commodities that supported 100 percent renewable energy projects consisting of wind and/or solar power in various parts of the world including Brazil, China, India, Japan, Europe, Mexico, and US. During FY2023/24, Lenovo expanded its renewable energy procurement for the first time to Japan.
Operational energy efficiency
Given that one of Lenovo’s most significant environmental aspects is emissions associated with energy consumption, it has a goal to continually improve the energy efficiency of its operations. In FY 2023/24, Lenovo’s initiatives to help reduce energy consumption included the following methods:
Environmental spotlight
In November 2023, Lenovo’s Tianjin Smart Campus (TJSC) was completed and put into operation. TJSC has implemented a total of 90 carbon reduction measures in nine major fields, including architectural design, construction process, campus management, manufacturing process, logistics, canteen, data center, digitalization, and renewable energy.
Lenovo deployed the Lenovo ESG Navigator to support TJSC. This integrated solution replaces the traditional manual management of ESG metrics with a flexible, transparent, and highly automated approach as it captures data across the value chain.
Logistics
Logistics is an important part of Lenovo’s global supply chain and a key component of Lenovo’s plan to meet net-zero by 2050. Lenovo is decarbonizing its logistics by deploying innovative solutions including demand management, low carbon transport, low carbon fuel, consolidation and utilization, and external partnerships.
In FY 2023/24, the priorities of Lenovo’s logistics included:
Demand management
Low carbon transport
Low carbon fuel
Consolidation and utilization
External partnerships
2 May be accomplished through installation of onsite renewable energy generation, entry into power purchase agreements (PPA) with power providers and/or the purchase of renewable energy credits.
Lenovo is a US$57 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, 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 with a pocket-to cloud portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo’s continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit https://lenovo.com and read about the latest news via our StoryHub.
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