Risks, Opportunities & Impacts  

Lexmark’s social and environmental impacts are divided into three focus areas, and are addressed by corresponding product, operational and community initiatives. Product initiatives correspond to the environmental and social benefits of the solutions we develop. These solutions help our customers reduce their environmental footprint, meet the accessibility needs of their workforce and operate in a more environmentally responsible manner.

We continue to develop product features and solutions that offer our customers opportunities to reduce the environmental impact of their printing and imaging activities. These efforts are validated by third-party certifications, including the Electronic Product Environmental Assessment Tool (EPEAT), a method for consumers to evaluate the effect of a product on the environment. For more information, go to epeat.net.

Operational initiatives encompass all the activities we engage in to reduce our own environmental footprint at Lexmark facilities. We have made great progress in reducing the environmental impacts of our operations and we are working toward carbon neutrality at all of our site locations. We continue to make aggressive goals and take action at our sites to meet these goals. In addition, Lexmark is committed to human rights, fair labor practices and diversity, equity and inclusion.

We have prioritized our corporate community focus on initiatives that support science, technology, engineering, and math (STEM) education improvement, and that promote diversity, equity and inclusion. By concentrating Lexmark’s resources on improvements in these areas, we have made significantly more progress than by focusing on a broader range of issues.

At Lexmark, we first make sure that we are complying with local statutes where we have operations. Then, we balance and prioritize our approach by assessing what needs to be done and applying best practices to meet the needs of all stakeholders. We continue to make significant strides in these focus areas. We continually look for opportunities to strengthen the environmental and social benefits of our product offerings, improve the efficiency of our operations and deliver additional positive benefits to the communities where we live and work.

Risks and Opportunities

Lexmark maintains a comprehensive and dynamic Enterprise Risk Management (ERM) program. Chaired by Lexmark’s treasurer, and supported by a cross-functional committee of no less than 15 additional company leaders, the objective of Lexmark’s ERM process is to minimize the probability and potential cost of an adverse event impacting the company by avoiding, accepting and/or mitigating those risks to which the company is exposed. Each key business area creates, maintains and implements business continuity plans to address significant business challenges as they arise. The committee submits periodic reports to executive management, including the Board of Directors. Our robust ERM program validates that executives and board members are informed and addressing key risks to the company.

Environmental, Social, and Governance (ESG) trends have driven Lexmark to evaluate the potential of physical risks and regulatory restrictions for our business and to consider potential opportunities to enhance and capitalize on our product offerings. ESG risk assessments have been conducted at each of our operational sites. Through this due diligence, we can help our customers achieve their own environmental sustainability and social responsibility goals. The most important risks and opportunities for Lexmark that are related to sustainability trends include the following: