Inside Lenovo's Circularity and ESG Drive in Manufacturing

Lenovo’s FY2025 ESG Report offers a detailed view of how it continues to integrate environmental and social goals across its global business. 

The report outlines efforts across sustainable design, circular economy adoption, emissions targets, inclusive hiring and responsible AI use. 

These actions align with its broader aim to meet climate science-based net-zero targets by 2050 and embed responsible innovation across its operations.

Expanding product circularity and material reuse

At the core of Lenovo’s environmental strategy is the adoption of circular economy principles, a model focused on minimising waste and reusing materials. 

In particular, the company is scaling up its use of closed-loop post-consumer recycled content across devices such as notebooks, desktops, tablets and accessories.

By doing so, Lenovo is targeting 100% of its PC products to include such recycled content by FY2026.

In addition to plastics, the business is increasing its use of ocean-bound plastics and recycled metals including aluminium, copper and rare earth elements. 

These materials help to reduce reliance on virgin resources and support more sustainable sourcing across the supply chain.

In tandem with these efforts, Lenovo is also exploring ways of extending product lifespan, including by investing in repairability. 

It offers customers step-by-step repair guides, service manuals and access to spare parts through its self-repair programme, an initiative supported by a partnership with third-party repair platform iFixit. 

Additionally, itss Product End-of-Life Management programme is designed to ensure returned or obsolete devices are reused or processed for material recovery. This helps to avoid landfill or export to non-OECD countries.

Recognition for environmental and governance performance

Lenovo’s ESG performance is gaining external validation. 

In FY2025, it earned a Platinum rating from EcoVadis, was ranked #8 in Gartner’s Global Supply Chain Top 25 and received a 9/10 score for ESG performance. 

MSCI ESG Ratings assigned the company a AAA rating. The Hong Kong Institute of Certified Public Accountants awarded Lenovo the Gold Award for Best Corporate Governance and ESG.

The company’s emissions targets are backed by the Science Based Targets initiative (SBTi). 

Here, Lenovo aims to cut absolute Scope 1 and 2 emissions by 50% and Scope 3 emissions from product use by 35% by 2030. 

It also targets a 66% reduction in upstream supply chain emissions. By 2050, Lenovo plans to reach a 90% absolute reduction across all scopes, with remaining emissions neutralised through carbon removal.

Laura Quatela, Senior Vice President, Chief Legal & Corporate Responsibility Officer, comments in the report: “In 2023, after having our net-zero emissions reduction targets validated by the Science Based Targets initiative, Lenovo shared its Climate Transition Plan. 

“This plan continues to guide our work to measure and manage emissions across our global enterprise. Our close planning and oversight have kept us on-track for our near-term 2030 emissions reduction targets.”

Building a socially inclusive and ethically governed business

Lenovo’s social impact also spans community outreach and workplace inclusion. 

In FY2024, it expanded its Love on Month of Service volunteering initiative by 44%, marking its highest-ever employee participation. Its philanthropic programmes aim to impact 15 million people positively by 2025.

On workplace diversity, it was again recognised by Disability:IN as a Best Workplace for People with Disabilities in the US, with new recognition in the UK and Brazil. 

Internally, Lenovo continues to offer leadership development, reverse mentoring and targeted recruitment efforts for underrepresented groups.

Calvin J Crosslin, Vice President, Chief Inclusion Officer and President of Lenovo Foundation, explains: “As a global company, navigating dynamic geopolitics is part of how we do business across 180 markets. Perspectives around diversity initiatives are evolving across the markets we serve, especially in the US. 

“It has become an important moment to listen and adjust in order to ensure that we collectively reinforce inclusion in all of our work. 

“Inclusion has always been at the core of what we do, and to exclude anyone on the basis of race, gender, background or any other factor would be counter to the mission I know my peers and I have been committed to for years.”

When it comes to governance, Lenovo continues to act on its “Smarter AI for All” vision. 

The company has implemented an organisation-wide AI policy covering ethics, data privacy and safety that reflects standards set by the European Commission’s AI Pact, Canada’s voluntary code on generative AI and UNESCO’s AI commitments.

Yuanqing Yang, Chairman and CEO, adds: “As our business focuses on enabling smarter AI for all, we continue to govern our use and application of AI across our business. Building on the creation of the Responsible AI Committee in 2022, in 2024 we implemented a company-wide policy governing the use of AI in our workforce and our technology. 

“The policy covers ethical, legal, safety and privacy concerns related to AI and aligns to additional external commitments we have signed on to this year.”

Lenovo has also formalised a dual role for Chief Security and AI Officer to oversee AI governance across all business functions. 

Through supplier collaboration schemes like the Lenovo 360 Circle and its Supply Chain Emissions Reduction Programme, the business supports partners in disclosing emissions data, aligning with SBTi goals and transitioning to renewable energy sources.

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