tina | procurement controls & sustainability procurement sustainability (apr. 2014) 2013 lenovo...

Tina | Procurement Controls & Sustainability

Procurement Sustainability

(Apr. 2014)

2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.

2

Sustainability Metric Reporting Overview


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


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


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



EICC-ON 22 19 86%



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


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)


6

Open Issues & Action Required – J. Gross


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



EICC-ON 7 7 100%



EICC Agreements1 EICC-On USE/Self-Assessment Questionnaire Audits Conflict Mineral Campaign




J Gannfors 100% 100% 100% 0 0 100%


Supplier Audit Results 1st

Audit2nd

Audit3rd

Audit


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


EICC-On 42 42 100%







S Yin 100% 100% 96% 1 8 100%

Supplier Audit Results 1st

Audit2nd

Audit3rd

Audit



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


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


Sustain Action # Suppliers

# Reported

% Complete

EICC-ON 25 25 100%







WT Yang 100% 100% 77% 6 9 100%

SUPPLIER EICC Audits Status:Supplier Audit

Results1st

Audit2nd

Audit3rd

Audit


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


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



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


4 suppliers joined in GHG/Water Reporting and complete

EICC Agreements

Sourcing Exec. EICCA Coverage

J.Zapko 100%

EICC Environmental Reporting Status:


GHG-2013 EICC Environ.

Reporting4 4 100%

Notes: - 2013 EICC Environmental Reporting Deadline: Aug. 31, 2013

Back Up

15

EICC Audit Concerns (By Suppliers)


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



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


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)

tina | procurement controls & sustainability procurement sustainability (apr. 2014) 2013 lenovo...

Documents

months eicc

eicc agmt coverage

amds audit

complete eiccon33100

supplier eicc audits

supplier audit results

base program eicc

eicc member company