Each year, as part of our EMS process, we set company-wide objectives and targets (O&Ts). These O&Ts address areas identified as significant for Lenovo, and, with regard to climate change, include energy consumption, associated GHG emissions, and resulting climate change impacts. Within the framework of Lenovo’s EMS, metrics and controls are established and performance relative to these metrics are tracked and reported. To learn more about our EMS Objectives and Targets, view Section 8.0 of our FY 2023/24 ESG Report.

Lenovo is fully committed to carbon footprint reduction in its operations. In December 2022, the Company updated its short-term science-based emissions reduction targets and established its net-zero targets, which were validated by the Science-Based Targets initiative (SBTi). Click here for more information.

For near-term targets, its Scope 1 and 2 emissions reduction targets are consistent with limiting warming to 1.5°C, the most ambitious goal of the Paris Agreement, and its Scope 3 emissions reduction targets meet ambitious criteria according to the SBTi’s methodology, which means they are in line with current best practices. For net-zero targets, the Company will achieve 90% emission reduction in Scope 1, 2, and 3.

In designing our solutions, we seek to prioritize energy efficiency first, drive installation of onsite renewable energy generation second and purchase renewable energy commodities or carbon offsets third

In addition to initiating projects to improve energy efficiency and reduce our greenhouse gas emissions across our organization, we are looking to increase Lenovo's use of renewable energy globally.

These targets have a base year of FY 2018/19, near-term target year of FY 2029/30, and net-zero target year of FY 2049/50. The following table details the Company’s Science-Based Targets, road maps for their achievement, and progress against the targets in FY 2023/24.

LENOVO EMISSIONS [newline]                REDUCTION NEAR-TERM TARGETS	ROAD MAP	STATUS AS OF FY 2023/24 BASE YEAR: FY 2018/19	FY 2029/30 TARGET
Reduce absolute Scope 1 + Scope 2 GHG emissions (related to Lenovo’s operations) by 50%	Hierarchical combination of energy efficiency, on-site renewable energy generation, and renewable energy commodities	On-Track	- 50%
Reduce Scope 3 GHG emissions (value chain) from use of sold products ~35% on average for comparable products	Reduce product emissions through energy efficiency improvements, engaging customers to use more renewable energy	On-Track1	- 35%
Reduce Scope 3 GHG emissions (supply chain) from procured goods and services 66.5% per million US$ gross profit	Inclusion of climate change requirements in Supplier Code of Conduct Supplier climate data collected annually from subset of suppliers Climate change KPIs included in supplier ESG scorecards (evaluation process) Expand supplier program to greater number of suppliers/ data capabilities and SBTi level of commitment	On-Track1	- 66.5%
Reduce Scope 3 GHG emissions from global logistics operations by 25% per tonne-km of transported product	Modal shift to lower carbon modes of transport Optimization of transport planning Increase of vehicle utilization Improvement of vehicle fuel efficiency	On-Track1	- 25%
LENOVO EMISSIONS [newline]                REDUCTION LONG-TERM TARGETS	ROAD MAP	STATUS AS OF FY 2023/24 BASE YEAR: FY 2018/19	FY 2049/50 TARGET
Reduce all GHG emissions by 90% - absolute reduction of Scope 1, 2 and 3 emissions. Neutralize remaining 10% of emissions through carbon capture, reforestation, or other means	Above concepts continue drive energy efficiency at Lenovo sites, for products, expand supplier program in commitment	On-Track1	- 90%

       ¹ The Company is in the process of improving input data for this Scope 3 category. The status reported here is the best available estimate at the time of publication. In the FY 2024/25 ESG Report, overall supporting data and target status[newline]        will reflect any improved input data.