Supply Chain Environment Footprint

Environmental Footprints of Supply Chain

ASUS identified that greenhouse gas and water footprints are the key risks in product production. In order to reduce the environmental impacts from them, ASUS has established supply chain environmental footprint management to survey greenhouse gas and water footprints to collect data and analyze the trends, providing reference for planning short, mid and long term reduction strategies.ASUS identified that greenhouse gas and water footprints are the key risks in product production. In order to reduce the environmental impacts from them, ASUS has established supply chain environmental footprint management to survey greenhouse gas and water footprints to collect data and analyze the trends, providing reference for planning short, mid and long term reduction strategies.

Greenhouse Gas Management

ASUS conducts greenhouse gas inventory on the more weighted "Category 1 Purchased Goods and Services" from 15 categories according to "Corporate Value Chain (Criterion 3) Accounting and Report Standards". 4 categories of suppliers were identified with significant greenhouse gas emissions based on the project analysis and software database for life cycle assessment. The inventory parameters were as follows:

Supplier Category:

  1. Product assembly plant
  2. Motherboard manufacturing plant
  3. Display manufacturing plant
  4. External power supply manufacturing plant

 

Scope of Inventory:

  • Duration of data collection: January to December 2016
  • Emission scope: Scope I and II
  • Data allocation: based the proportion of ASUS products in total shipment, ratio of production line man-hours, production output, proportion of resources used, product value as a proportion of total output, and more
  • Global Warming Potential (GWP) emission coefficient: 2007 IPCC AR4 100-yr

 

Data Analysis:

In 2016, GHG inventory was done for 30 suppliers, and the results showed below:

  • Overall emission volume of Scope 1 and 2: Scope 1 was 10% when Scope 2 was 90%. The primary source of Scope 2 indirect emission was the procured electricity.
  • Supplier GHG verification: in 30 suppliers, 63% of them implemented external verification.
  • Fluorinated greenhouse gas (F-GHG) emission: for Scope 1, hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6) are collectively called F-GHG, and are gases with top 3 GWP*, indicating that they have the most prominent impacts in global warming. Of these 3 F-GHG, SF6 with the greatest GWP was the most emitted, making up 46% of total F-GHG emissions. When we further analyzed the result, display manufacturing plant was the primary emission source of SF6.
    *Note: GWP is used to measure the impact of GHG on global warming
  • GHG reduction management: in 30 suppliers, 70% of surveyed suppliers had established GHG reduction programs and targets.GHG reduction management: in 30 suppliers, 70% of surveyed suppliers had established GHG reduction programs and targets.

ASUS will use the historical inventory data and also consider the capability of and current management status of suppliers to develop short-term and mid-term management strategies for greenhouse gases in supply chain, including:

  1. Expand the scope of the inventory to include more key component suppliers and OEM providers
  2. Request the OEM providers of primary products to propose energy-saving plans and targets in production process
  3. Include new questions in the survey to investigate the current status of the use of renewable energy, as well as the plan to introduce the renewable energy

Water Resource Management

Water management is another concerned issue of environmental footprint. The consumption of water resources are mainly from component manufacturing process and product assembly process in supply chain. To further understand the risk of water resource in ASUS supply chain, we surveyed 30 suppliers who were also the targets of GHG inventory. The parameters of water resources inventory were consistent with the GHG inventory.

Data Analysis:

  • Status of Water Resources Reuse and Recycled: 78% of water intake was not recycled and discharged as waste liquid.
  • Risk identification of water resources: in 30 suppliers, 97% performed the risk identification. 90% of which identified no risk when 10% (2) of them did.
  • Risk type of water resource: we further analyzed the risk faced by those suppliers and found that 1 supplier with unreliable water supply and 1 supplier with both poor water quality and unreliable water supply.
  • Equipment for water treatment: in 30 suppliers, 37% of them had deployed water treatment equipment. 64% of these suppliers used water recycle and reuse equipment when 36% of them used rainwater collectors.
  • Reduction plan of water resource: in 30 suppliers, 60% had setup reduction plan and target to decrease the use of water.

ASUS will use the historical inventory data and also consider the capability of and current management status of suppliers to develop short-term and mid-term management strategies for water resource in supply chain, including:

  1. Expand the scope of the inventory to include more key component suppliers and OEM providers
  2. Continue to track suppliers identified with risk as well as their improvement progress
  3. Include new questions in the survey to investigate the waste water pollution, such as the emission volume of nitrogen, phosphorus, and heavy metals to further identify environmental impacts

Milestone and Achievements: