tina | procurement controls & sustainability procurement sustainability (apr. 2014) 2013 lenovo...
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Tina | Procurement Controls & Sustainability
Procurement Sustainability
(Apr. 2014)
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
2
Sustainability Metric Reporting Overview
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
Sustainability Metric Reporting concentrate on 3 areas:- Base Program: EICC Agmt Coverage, EICC-ON Self-Assessment Questionnaire, EICC Audits/Compliance- Environmental Data: Green House-Gas Emissions, Water Usage & Waste- Conflict Minerals: Responsible sourcing on Tin, Tantalum, Tungsten & Gold from Central Africa
Program Objectives
All Programs• 90% Minimum Overall Procurement Spend in each of all three programs• But stretch goal of 95% (marketplace could single out any Lenovo supplier for attention!)
Base Program
• EICC Executed Agmt. or EICC Member Company Coverage: 98% • EICC-ON Use/ Self-Assessments (every 12 months): 90% • Timely Audits (every 24 months) or confirmed schedule audit date: 90% • Aged Audits: <1 By Sourcing Exec < 5 Overall• Corrective Action Plans: Within 60 Days post audit• Audit Results: No firm target but prefer > 80% Overall, weighted score >160 points, and results
improve 5% from audit to audit
Environmental Data • No firm target but focus on complete reporting and suppliers have reduction goals
Conflict Minerals• No firm target but focus on complete survey response, surveys are pushed to their suppliers,
identification of smelters & refiners, and driving towards conflict-free compliant designations
3
Sustainability Metrics – Apr. 2014
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
Drive suppliers to complete EICC environment report ASAP. Drive suppliers to complete EICC-ON system renewal. All Teams need to be proactive on upcoming and aged EICC audits
EICC AgreementsEICC-On USE/Self-
Assessment Questionnaire (SAQ)
Audits Conflict Mineral Campaign
Sourcing Exec. EICCA Coverage EICC Assessment Tool Audit Coverage Aged Audits Audits Aging in 6 Months
EICC Due Diligence Report(EICC DD Report)
Overall 98% 97% 87% 7 20 100%
Supplier Audit Results
1st
Audit2nd
Audit3rd
Audit
Average (All Suppliers) 86% 92% 90%
Sourcing Exec
Agmt Coverage
SAQ Coverage
Audit Coverage
AgedAudit
Conflict Mineral/EICC
DD Report
Liu Jie 100% 100% 100% 0 100%
J Gross 89% 86% 82% 0 100%
J Gannfors 100% 100% 100% 0 100%
S Yin 100% 100% 96% 1 100%
WT Yang 100% 100% 77% 6 100%
J Zapko 99% N/A N/A N/A N/A
Tower Missed Objectives / Needed Action:
EICC Status Master_201404
4
EICC Compliance Review – Liu Jie
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
EICC Agreements EICC-On USE /Self-Assessment Questionnaire Audits Conflict Mineral Campaign
Sourcing Exec. EICCA Coverage EICC Assessment ToolAudit
CoverageAged Audits Audits Ageing in
6 Months EICC Due Diligence Report
Liu Jie 100% 100% 100% 0 0 100%
Supplier 1st
Audit2nd
Audit
Intel 91% Low Risk, Audit not required
Cybertan 87% Not Due
Liteon 94% Not Due
Sustain Action # Suppliers # Reported % Complete
EICC-ON 3 3 100%
GHG-2014 EICC Environ. Reporting 3 0 0%
Conflict Mineral/EICC DD Report 5 5 100%
SUPPLIER EICC Audits Status:
Supplier Audit Results
1st
Audit2nd
Audit
Average (All Suppliers) 91% N/A
Notes: - AMD’s audit is not required due to low risk.- Cyber OEM; Foxconn (Chongqing)- Sierra Wireless OEM; Flextronics(Zhuhai)- Nvidia is fabless company and exempted from EICC Audit
ODM Supplier & Site Commodity Performed
GCM
Cybertan/Foxconn (Chongqing) Comms Chao Yang
Notes: - 2014 EICC Environmental Reporting Deadline: July. 18,2014
5
EICC Compliance Review – J. Gross
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
Sustain Action # Suppliers # Reported % Complete
EICC-ON 22 19 86%
GHG-2014 EICC Environ. Reporting 11 0 0%
Conflict Mineral/EICC DD Report 25 25 100%
EICC Agreements EICC-On USE/Self-Assessment Questionnaire Audits Conflict Mineral Campaign
Sourcing Exec. EICCA Coverage EICC Assessment Tool Audit Coverage Aged Audits Audits Ageing in 6 Months EICC Due Diligence Report
J Gross 89% 86% 82% 0 0 100%
Supplier 1st
Audit2nd
Audit 3rd Audit
Flex 92% 99% Not Due
Quanta(Shanghai) 78% 95% 85%
Quanta(Changshu) 85% Not Due N/A
Wistron (Kunshan) 92% 89% 91%
Taisol 95% 89% 82%
USI 91% 89% Not Due
LCFC 92% Not Due N/A
Goodway 81% Not Due N/A
Thinkwise 21% 26% N/A
S/Sanyo 58% Not Due N/A
SUPPLIER EICC Audits Status:Supplier Audit
Results1st
Audit2nd
Audit 3rd Audit
Average (All Suppliers) 79% 92% 86%
Start to track all ODM suppliers’ facilities’ EICC compliance (refer to page 6) 4 supplier added to the tracking list for EICC compliance (refer to page 6) 2 suppliers audits aging in 6 months: Goodway & Shimane Sanyo(UMC) (refer to page 16)
Notes: - 2014 EICC Environmental Reporting Deadline: July. 18,2014
6
Open Issues & Action Required – J. Gross
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
ODM Supplier & Site Commodity Performed GCM Status
Quanta (ShangHai) NB IPG/Edge/Shell;Medion Jing Ge/Jarod Tao Internal audit done
Quanta (ChongQing) NB TPG Jing Ge
Wistron (KunShan) NB IPG/Edge/AIO;MIDH;Medion Linhui Xiong had provided audit: 2013-12-17
Wistron (ChengDu) NB IPG/Edge Linhui Xiong
Bitland (Hefei) NB TPG Allen Liu
Pegatron (ShangHai) NB TPG;MIDH;Medion Dennis Xiong
Compal (KunShan) NB IPG/Edge/Shell;Medion Dennis Xiong/Allen Liu
Compal (ChengDu) NB TPG Dennis Xiong/Allen Liu
ODM Supplier Tracking
4 supplier need to complete EICC compliance (EICC Compliance include : EICCA, EICC-ON and EICC Audit)
Supplier Name Actions Required Performing GCMs Target Date Status
Toshiba Home Tech. EICC Compliance Implementation: 3 actions (EICC Audit)
Winy Sui May.31.2014 Working on EICC Audit. Plan to complete by May. 2014
Pegatron EICC Compliance Implementation: 2 actions (EICC-ON and EICC Audit)
Dennis Xiong(linhui xiong)
Oct.2014 Completed EICC-ON & SAQ, commit to complete audit by Oct. 2014
Dafon EICC Compliance Implementation: 3 actions (EICCA,EICC-ON and EICC Audit)
Xiang Ke TBD
Bison EICC Compliance Implementation: 3 actions (EICCA,EICC-ON and EICC Audit)
Xiang Ke TBD
7
EICC Compliance Review – J Gannfors
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
Sustain Action # Suppliers # Reported % Complete
EICC-ON 7 7 100%
Conflict Mineral/EICC DD Report 7 7 100%
GHG-2014 EICC Environ. Reporting 1 0 0%
EICC Agreements1 EICC-On USE/Self-Assessment Questionnaire Audits Conflict Mineral Campaign
Sourcing Exec. EICCA Coverage EICC Assessment ToolAudit
CoverageAged Audits Audits Ageing in
6 Months EICC Due Diligence Report
J Gannfors 100% 100% 100% 0 0 100%
SUPPLIER EICC Audits Status:
Supplier Audit Results 1st
Audit2nd
Audit3rd
Audit
Average (All Suppliers) 82% 88% 93%
1 supplier(EMC) is added with 6mons grace period ( Mar, 2014-Sept. 2014) 1 supplier audit aging in 6 months: CIS (refer to page 16)
Supplier 1stAudit
2nd Audit
3rd Audit
CIS 73% 82% Not Due
Karrie 91% 93% 93%
Notes: Emulex OEM: Flex.(Zhuhai)Dothill: Foxconn (Wuhan)LSI OEM: TIIN Notes:
- 2014 EICC Environmental Reporting Deadline: July. 18,2014
8
EICC Compliance Review – S. Yin
Sustain Action # Suppliers # Reported % Complete
EICC-On 42 42 100%
GHG-2014 EICC Environ. Reporting 22 0 0%
Conflict Mineral/EICC DD Report 44 44 100%
EICC Agreements EICC-On USE/Self-Assessment Questionnaire Audits Conflict Mineral Campaign
Sourcing Exec. EICCA Coverage EICC Assessment ToolAudit
CoverageAged Audits Audits Ageing in
6 Months EICC Due Diligence Report
S Yin 100% 100% 96% 1 8 100%
Supplier Audit Results 1st
Audit2nd
Audit3rd
Audit
Average (All Suppliers) 84% 87% 87%
SUPPLIER EICC Audits Status:
Start to track all ODM suppliers’ facilities’ EICC compliance (refer to page 9) 8 Suppliers’ audits aging in 6 months (refer to page 9) 1 supplier audit had aged: Bitland (refer to page 9)
Supplier1st
Audit2nd
Audit3rd
Audit
Longwell 96% 72% Not Due
JME 85% Not Due
Grandsun 83% 89% Not Due
MSI 89% 82% 95%
Comlink 68% 83% Not Due
TIN 94% Not Due
YiFang 88% Not Due
A-Max 91%
MeiZhiZun 64% 55% Not Due
ECS 78% 86% 76%
Liteon 93% 96% 94%
Supplier1st
Audit2nd
Audit3rd
Audit
AVC 89% 91% 92%
Jiatian 94% 93% 90%
Acbel 97% 93% Not Due
Beitianli 97% 94% Not Due
Brother 77% 90% Not Due
Volex 77% 97% 87%
Primax 86% 90% Not Due
Chicony 98% 93% Not Due
Cosnic 58% Not Due
Huntkey 94% 96% 85%
Luxshare 75% 93% Not Due
Bitland 82% 81% Aged
Notes: - 2014 EICC Environmental Reporting Deadline: July. 18,2014
9
Open Issues & Action Required – S Yin
8 Suppliers’ Audits Ageing in 6 Months
Supplier LocationPrevious Audit Date
Commodity Performing GCMSourcing
Exec.
Primax Dongguan 2012-7-3 Mice&KB Annie Liu Steven
Chicony Suzhou 2012-12-6 Power Supply Mandy Xia Steven
Comlink Shenzhen 2012-12-24 Cable Rufus ZX2 Dong Steven
Cosonic Dongguan 2012-10-24 Headset Sophia Li Steven
Grandsun Shenzhen 2012-11-12 CableRufus ZX2 Dong Steven
JME Shenzhen 2012-10-10 Mech.Mandy Xia Steven
Logitech Suzhou 2012-12-12 MiceMandy Xia/Grace Jin./ Sherman Xie Steven
TIN Shanghai 2012-12-11 ODMXiaoQing Ma/Peizhong Zhao Steven
1 supplier audit had aged: Bitland
Supplier Location Commodity Performing GCMPrevious Audit Date
Auditor Aged AuditComments
Sourcing Exec.
Bitland Shenzhen ECAT Xuan Yang/XiaoQing Ma2012-5-26
(will complete at 2014-5-23)
3rd PartyAged Need to confirm audit schedule Steven
10
EICC Compliance Review – WT Yang
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
Sustain Action # Suppliers
# Reported
% Complete
EICC-ON 25 25 100%
GHG-2014 EICC Environ. Reporting 23 0 0%
Conflict Mineral/EICC DD Report 26 26 100%
EICC Agreements EICC-On USE/Self-Assessment Questionnaire Audits Conflict Mineral Campaign
Sourcing Exec. EICCA Coverage EICC Assessment ToolAudit
CoverageAged Audits Audits Ageing in
6 Months EICC Due Diligence Report
WT Yang 100% 100% 77% 6 9 100%
SUPPLIER EICC Audits Status:Supplier Audit
Results1st
Audit2nd
Audit3rd
Audit
Average (All Suppliers) 83% 94% 89%
Start to track all ODM suppliers’ facilities’ EICC compliance (Refer to page 11) 8 suppliers’ EICC audit report need to be refreshed (refer to page 11) 9 Suppliers’ audits aging in 6 months(Refer to page 12) Suppliers need renew the EICC-ON in 2014 (Pls refer to page 12)
Supplier1st
Audit2nd
Audit3rd
Audit
Delta 72% 96%Not Due
Chicony Power
78% Not Due
Hynix 60% 10.2014
Sanyo 97% Not Due
Seagate(Wuxi)
97% 99% Aged
Seagate(Suzhou)
98% 98%Not Due
HLDS 76% 93%
Ramaxel 94% Not Due
Supplier1st
Audit2nd
Audit
WD 96% Not Due
Sony 91% Not Due
Sharetronic 61% Not Due
Panasonic 92% 85%
PLDS 88% Aged
Samsung 100% Not Due
TSST 80% Not Due
Simplo (C.S.)
88% Not Due
Simplo (C.Q.)
86% Not Due
Supplier1st
Audit2nd Audit
3rd Audit
AUO 92% 96% Not Due
BOE 98% Late
Innolux 91% Late
IVO 82% Not Due
LG Chem 89% 83%
LGD(GZ) 62% 90% Late
LGD(NJ) 67% 86% Late
TPV 55% 95% 89%
Micron working
Notes: - 2014 EICC Environmental Reporting Deadline: July. 18,2014
11
Open Issues and Action Required – WT Yang
EICC Audit Report Refreshment (Aged Audit) and CAP (Corrective Action Plan)
ODM Supplier & Site Commodity Performed GCM
Innolux Panel Joe Peng
TPV Monitor;Medion Byron Jin
Foxconn Display(CMMSG) Monitor Byron Jin
Wistron Display Monitor Byron Jin
ODM Supplier Tracking
Supplier Name Actions Required Performing GCMs Target Date Status
Hynix Need to refresh the EICC audit report Angela Wang Oct. 2014 commit to complete by Oct. 2014
BOE Need to refresh the EICC audit report Lei Gu Checking with supplier for audit schedule
Innolux Need to refresh the EICC audit report Lei Gu Internal audit done, but not receive audit report
Micron Need to refresh the EICC audit report Terry Ding Finished Had finished audit and now waiting for EICC team’s report.
LGD(SZ&NJ) Need to refresh the EICC audit report Checking with supplier for audit schedule
Toshiba Need to refresh the EICC audit report Kitty RL Zhang/Jeff Luo Checking with supplier for audit schedule
Seagate Need to refresh the EICC audit report Kitty RL Zhang/Jeff Luo Checking with supplier for audit schedule
PLDS(Philips-Liteon)
Need to refresh the EICC audit report Wheeler Yan/Ocean Zhang
Checking with supplier for audit schedule
12
9 Suppliers’ Audits Ageing in 6 Months
Open Issues & Action Required – WT Yang
EICC-ON Renewal
Supplier Name Performing GCMs Target Completion Date Current Status
Dong Guan Han Yang computer CO.LTD April. 2014Lapsed
HEFEI BOE OPTOELECTRONICS TECHNOLOGY CO.,LTD. Lei Gu Lapsed
PLDS Wheeler Yan/Ocean ZhangLapsed
Supplier LocationPrevious Audit Date
Commodity Performing GCMSourcing
Exec.
Simplo Changshu Changshu 2012-7-9 Battery Jukka Song Wentao
Simplo Chongqing Chongqing 2012-7-30 Battery Jukka Song Wentao
TPV Fuqing 2012-7-5 Panel Iris Y Zhang Wentao
WD Thailand 2012-7-17 HDD Kitty RL Zhang/Jeff Luo Wentao
Samsung Suzhou 2012-6-13 Memory Angela Wang Wentao
IVO Kunshan 2012-12-24 VisualLei Gu Wentao
Ramaxel Huizhou 2012-12-26 MemoryTerry Ding Wentao
Sharetronics Dongguan 2012-9-29 Memory?? Wentao
TSST Dongguan 2012-12-5 ODDWheeler Yan/Ocean Zhang Wentao
13
EICC Compliance Review – J. Zapko
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
4 suppliers joined in GHG/Water Reporting and complete
EICC Agreements
Sourcing Exec. EICCA Coverage
J.Zapko 100%
EICC Environmental Reporting Status:
Sustain Action # Suppliers # Reported % Complete
GHG-2013 EICC Environ.
Reporting4 4 100%
Notes: - 2013 EICC Environmental Reporting Deadline: Aug. 31, 2013
15
EICC Audit Concerns (By Suppliers)
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
10 Suppliers have audits conducted on them.
Supplier Location Commodity Performing GCMPrevious Audit Date
Auditor Aged AuditComments
Sourcing Exec.
BOE Beijing Panel Lei Gu 2010/08 3rd Party Late Commit to do the audit in Aug 2013 WT Yang
Hynix Korea Memory Angela Wang 2011/05 3rd Party Late Commit to do the audit in Oct. 2014 WT Yang
Innolux Ningbo Panel Lei Gu 2011/08 3rd Party Late Audit done, not yet rcvd WT Yang
Micron XI’AN Memory Terry Ding 2011/11 Internal Audit Aged finished and waiting for EICC report WT Yang
LGD GZ & NanJing Panel Lei Gu 2011/12 3rd Party Aged Need to confirm audit schedule WT Yang
Toshiba HDD Kitty RL Zhang/Jeff Luo Late Commit to do the audit in 31st May 2014 WT Yang
Bitland Shenzhen ECAT Xuan Yang/XiaoQing Ma2012-5-26
(will complete at 2014-5-23)
3rd PartyAged Need to confirm audit schedule Steven
PLDS GuangzhouODD (OEM
Manufacture of PLDS and Sony)
Wheeler Yan/Ocean Zhang 2012-5-21 3rd Party Aged Need to confirm audit schedule WT Yang
Seagate Suzhou Suzhou HDD Kitty RL Zhang/Jeff Luo 2012-5-14 3rd Party Aged Need to confirm audit schedule WT Yang
Seagate Wuxi Wuxi HDD Kitty RL Zhang/Jeff Luo 2012-5-7 3rd Party Aged Need to confirm audit schedule WT Yang
16
EICC Audit Concerns (By Suppliers)20 Suppliers’ Audits Aging in 6 Months
Supplier LocationPrevious Audit Date
Commodity Performing GCMSourcing
Exec.
Primax Dongguan 2012-7-3 Mice&KB Annie Liu Steven
Simplo Changshu Changshu 2012-7-9 Battery Jukka Song Wentao
Simplo Chongqing Chongqing 2012-7-30 Battery Jukka Song Wentao
TPV Fuqing 2012-7-5 Panel Iris Y Zhang Wentao
WD Thailand 2012-7-17 HDD Kitty RL Zhang/Jeff Luo Wentao
Samsung Suzhou 2012-6-13 Memory Angela Wang Wentao
Chicony Suzhou 2012-12-6 Power Supply Mandy Xia Steven
CIS Wuxi 2012-9-28 Computer Parts Catherine Ge1 Zhou John G.
Comlink Shenzhen 2012-12-24 Cable Rufus ZX2 Dong Steven
Cosonic Dongguan 2012-10-24 Headset Sophia Li Steven
Goodway Kunshan 2012-12-5 USB Port Replicator&Security LockEvory Wu Jerry G.
Grandsun Shenzhen 2012-11-12 CableRufus ZX2 Dong Steven
IVO Kunshan 2012-12-24 VisualLei Gu Wentao
JME Shenzhen 2012-10-10 Mech.Mandy Xia Steven
Logitech Suzhou 2012-12-12 MiceMandy Xia/Grace Jin./ Sherman Xie Steven
Ramaxel Huizhou 2012-12-26 MemoryTerry Ding Wentao
Sharetronics Dongguan 2012-9-29 Memory ?? Wentao
Shimane Sanyo(UMC) Dongguan 2012-11-26 DocksDoris Zhuo Jerry G.
TIN Shanghai 2012-12-11 ODMXiaoQing Ma/Peizhong Zhao Steven
TSST Dongguan 2012-12-5 ODDWheeler Yan/Ocean Zhang Wentao
17 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
Conflict Mineral Campaign
Liu Jie J.Gross R.Ferranti J.Gannfors S.Yin WT. Yang0%
50%
100%100% 100% 100% 100% 100% 100%
EICC Due Diligence Report Completion %
Conflict Mineral Campaign Kicked off in Aug. 15, 2013 (Deadline: Oct. 15, 2013)– All suppliers need complete EICC Due Diligence report as attached– Cover 95% spend suppliers (as per FY1213 spend report)
86% suppliers provide EICC Due Diligence Report to date (based on EICC Status Mater List)– Total 96/111 suppliers provide EICC due Diligence report– Total 96 suppliers spend coverage >86%(as per FY1213 spend report)
18
Sustainability Status
2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.
EICC Audits
• Received AVC,Chicony Power & Jiatian 3rd party audit report; • EICC audit pipeline
‒ Lexmark: Plan to do the EICC audit in May 2013 (late to rcvd audit report)‒ Innolux: Plan to do the EICC audit in June 2013 (late to rcvd audit report)– BOE: Plan to do the EICC audit in Aug. 2013 (Late to rcvd audit report)– Toray: Plan to do the EICC audit in Dec. 2013– Taisol: Plan to do EICC audit in Mar. 2014
Lenovo GHG Program
• Total 70 suppliers(DP:66;GP:4) joined in 2013 Lenovo GHG program and reported through EICC-ON system– Supplier's’ spending coverage more than 95%– Deadline: Aug. 31, 2013
EICC Training
• EICC-ON training hosted by EICC & Enablon in April & May, 2013– EICC-ON registration and Account activation– SAQ input and SAQ grant to customer
• EICC-ON environment report module training hosted by EICC in May 30, 2013– How to report carbon & water emission through EICC-ON environment module
• EICC environmental reporting training in May, 2013 • Conflict Minerals internal training in Aug, 2013
LIPC Audit
• LIPC Passed ISO9001 audit (April, 2013)• LIPC Passed External BCP(Business Continual Plan) assessment (May, 2013) • LIPC Passed CCC & CECP audit (June 2013)• Internal security Audit (Aug. 29th~30th)• China Environmental Labeling Audit(Aug. 22th ~ 23th)• LIPC Passed Green Mark Audit (Nov. 13th~14th)• LIPC Passed PWC Audit (Dec. 16th~20th)
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