ASUS 2020 Sustainability Goals - Supply Chain Management

Use conflict free minerals for our products. 100% of tantalum, tin, tungsten and gold are procured from qualified smelters by 2020

Conflict minerals refer to the metals, namely tantalum, tin, tungsten and gold, mined in the context of armed conflict and human rights violations, particularly from the Democratic Republic of Congo and its neighboring countries in Central Africa. The minerals in these areas are mined by abusing the people who are forced to carry out inhumane mining works in the harsh environment, resulting in problems such as the exploitation of labor, child abuse, environmental damage, and more seriously, direct or indirect funding the military turmoil in Central African region.

Tantalum, tin, tungsten, and gold are the four materials essential to the functioning of electronic products. Therefore, corporate shall take its social responsibilities, and through the establishment of management measures to avoid these four metals from originating from conflict minerals.

[Policy]

ASUS has promised to not using conflict minerals from illegal mining in the products, and will safeguard the rights and safety of international mining workers. Through formulating a conflict-free mineral procurement policy, we requires suppliers to preferentially purchase metals from qualified smelters and cooperate with ASUS due diligence investigation to disclose procurement status regarding conflict minerals.

Considering that the status of certifying smelters is becoming more mature and there are sufficient certified smelters for market demand, we hence developed the plan of introducing qualified smelters, and set the target for 100% use of qualified smelters in the supply chain by 2020.

[Objective]

  • 2018: 100% of tantalum is procured from qualified smelters
  • 2019: 100% of tin is procured from qualified smelters
  • 2020: 100% of tungsten, and gold are procured from qualified smelters

[Achivement in 2018]

With the implementation of the conformant smelter conversion plan year by year, the conformant proportion has been significantly improved from 22% in 2013 to 100% in 2018, thereby achieving the goal of using 100% conflict-free metals in ASUS products early. Meanwhile, the list of sources of conformant smelters is published on the CSR website of ASUS in the interests of disclosing relevant information. We will also maintain an annual supply chain survey and work with suppliers to ensure 100% mineral procurements were from conformant smelters.

Enhance the corporate social responsibility in supply chain. 100% of key components suppliers pass the audit performed by the 3rd party and are in compliance with the ASUS Supplier Code of Conduct by 2020

The supply chain is the stakeholder that allows ASUS to have the greatest impact on corporate social responsibility, as well as the strategic partner being relied heavily on manufacturing products and services. Any risk occurring in the supply chain can cause disruptions in supply, and affect not only business operations but even ASUS brand image. Therefore, ASUS has established a Supplier Code of Conduct to reduce risks and strengthen partnerships through the processes of sustainable risk management, including the procedures of identifying, auditing, continual improving, and capacity building.

[Policy]

ASUS has implemented corporate social commitment to protect the labors' human right in the supply chain, maintain operational safety, and reduce environmental pollution. Considering the procuring pattern with the suppliers, characteristics of the industry, and geographical factor, we identify the key suppliers and set the goal of 100% compliance with ASUS Supplier Code of Conduct through onsite audits, continual improvements, and the management of capacity building.

[Objective]

2020: 100% of the key suppliers pass the 3rd party audit

[Achivement in 2018]

In 2018, a total of twenty on-site audits were performed. The total number of findings identified was 260, and the proportion that passed the audits was 75%. For the findings identified, ASUS has required suppliers to continue to improve; tracked the progress until the completion of cases; and launched assistance and counseling improvement plans for unqualified suppliers, while including them in the list of on-site audits for the following year.

Strengthen the supply chain environmental management and establish a supply chain environmental footprint roadmap. The data coverage rate reaches 90% of the products making revenue by 2020

The product life cycle impacts the environment in each stage: raw materials, manufacturing, transportation, usage, and disposal, and the enterprise shall take its social responsibility to reduce the impact. The enterprise shall quantify the environmental impact and estimate the maintenance cost through performing the Environmental Profit and Loss (EP&L), and then set the short-, mid-, and long-term management goals for the items with significant impact.

[Policy]

ASUS is committed to reducing the environmental footprint and creating green high-tech leadership. We execute a thorough inventory on the environmental impacts from suppliers' production processes, and calculate the recovery cost through the monetary valuation of environmental profit and loss, in order to plan for the management programs and set the reduction goals.

[Objective]

  • 2018: Complete the EP&L for Notebook Computer, Mobile Phone, and Motherboard
  • 2019: Complete the EP&L for Display
  • 2020: Complete the EP&L for Tablet

[Achivement in 2018]

ASUS completed the EP&L for Desktop productline. we continues to expand the product line and this time we evualted the environmental impact of the supply chain for Desktop, which contributes 60% of the revenue. The analysis result shows that the impact of products supply chain is approximately $387 million US Dollars.