Message from the Chairman and CEO

Message from the Chairman and CEO

Message from the Chairman and CEO

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Message from Chairman

The COVID-19 pandemic and climate change have severely impacted global development, spurring further realization that the uncertainty they have created in our environment, economy, and society will become the new normal. Extreme weather conditions have affected our environment and tested the resilience of business operations, while the pandemic has changed the way people work and altered consumer behavior. At the same time, it has given rise to new businesses and disrupted existing industries, prompting companies to accelerate the deployment of changes and innovations that they have previously placed on hold.

As a leading brand in Taiwan's ICT industry, ASUS has always regarded environmental and social engagement as a part of our business strategy. We advocate strategic sustainability with a focus on fundamentals and results. With technological advantages and innovative development, we use scientific, data-driven evaluation as the fundamental approach to constantly evolve and pursue excellence. ASUS concentrates on the four sustainability focuses of climate action, circular economy, responsible manufacturing, and value creation, while also formulating new green actions to increase competitive advantages and grow with greater sustainability and inclusiveness.

Last year, ASUS officially committed to strengthen our R&D efforts to further increase product energy efficiency to a level that is on average 30% higher than the specifications of Energy Star, the strictest environmental standard. Furthermore, we are leveraging the influence of the ASUS brand to drive key suppliers to achieve a 30% reduction in carbon intensity. ASUS has also committed to using 100% renewable energy in our Taiwanbased operations centers by 2030 and global operations centers by 2035 with the aim of fostering similar actions throughout the industry and promoting a positive impact on the environment. To achieve net zero carbon emissions throughout our value chain, ASUS has set science-based targets with a three-staged implementation approach of enhancing energy efficiency, expanding the use of renewable energy, and reducing emissions by investing in innovative technologies.

Our sustainability strategy of focusing on fundamentals and results has received widespread acclaim. In addition to being included in several responsible investment indexes, ASUS was recognized as Asia’s Most Socially Responsible Company in 2020, the first time a company in Taiwan has been awarded this distinction. This year, we received the Silver Award for Best Sustainability Report (Large Company), Gold Award for Best Environmental Impact Reporting, and Silver Award for Best Supply Chain Reporting in the 2021 Asia Sustainability Reporting Awards. These recognitions affirm our efforts in identifying the impact and challenges of material issues through sustainability strategies, continuous innovations to incorporate sustainability in core operations, performance achievements in past years, and transparency in disclosure. ASUS was also selected by the Financial Times, Nikkei Asia, and Statista as one of the climate leaders in the Asia Pacific region in 2022.

Thanks to the support of industry leaders, I was elected as the ninth President of the Taiwan Business Council for Sustainable Development (BCSD Taiwan) in August of last year. It is my aspiration to help companies in Taiwan spearhead their sustainability trends and standards, establishing strategic cooperation networks, and adopting practical solutions to spark innovation and strengthen resilience. We will also continue to invest in low-carbon sustainability for future generations, while creating and leveraging synergy through diverse cooperation and value creation across different industries.transformations by connecting with international sustainability.

The challenges ahead will only be more diverse and difficult. We adhere to our corporate culture and promote a human-centric design thinking concept to provide customers with the best experiences. We will continue to strengthen the core competencies of the company and cultivate exceptional talent for ASUS to fulfill our business philosophy of striving to be among the world-class green high-tech leaders and to provide valuable contributions to humanity.

Chairman Jonney Shih

Message from the CEO

If 2020 was a year of upheavals, 2021 was a year of innovation and resilience for ASUS. The company has continued its outstanding performance in business operations during the pandemic. We have won first place in the Interbrand Best Taiwan Global Brands for the eighth time and have ranked in Fortune’s World's Most Admired Top 50 All-Stars for the seventh time. These achievements would not have been possible without the dedication and hard work of all employees and the cooperation of our partners in the industry. ASUS has already achieved outstanding results in sustainability operations, but we hope to continue connecting sustainability issues with digital transformation in order to further contribute to society and the environment.

We need innovative ideas and advanced technologies to create new solutions in the new digital economy— that’s why ASUS established the Innovative Development Office We understand that innovation must be achieved with structural changes that reflect the changing times and industry, and we leverage internal innovation to ensure the continuous advancement of the company. We aim to adopt open-minded innovation and investments in external innovative technology to create shared value with business partners. ASUS regards innovation as an indispensable foundation for progress, sustainable development and increased competitiveness.

We actively support innovative ideas and talent cultivation, and we foster close collaboration with industry, government and academia to expand digital transformation. In December 2021, ASUS and National Taiwan University established the ASUS-NTU Joint Research Center to encourage business units to leverage industrialacademic collaboration or strategic alliances to actively develop key technologies and expand new businesses. We shall focus on advanced electromagnetics, next-generation computers, the Internet of Things (Io) and artificial intelligence (AI) with the aim of setting a new model for Taiwan's industrial-academic collaboration. We shall help Taiwan enhance its R&D capacity and establish its position in the global science and technology community, and cultivate a new generation of R&D talents.

The Glasgow Climate Pact, reached at the COP26 Climate Summit in 2021, has accelerated the implementation of climate action. As befits a leading global technology company, ASUS joined the RE100 global renewableenergy initiative, in 2021 — a milestone for our carbon-reduction ambitions. In the same year, ASUS joined the Taiwan Climate Partnership as one of the founding corporate members. We shall consolidate the strengths of partners in the Partnership and work with international climate initiatives and organizations. We shall also use our supply-chain influence to promote low-carbon manufacturing and reduce carbon emissions.

We shall support the final and most important target of the United Nations Sustainable Development Goals (SDGs) — to strengthen the means of implementation and revitalize the global partnership for sustainable development. ASUS believes that it is important to innovate and cooperate with both industry and external partners in both business development and sustainability. We hope to achieve prosperity and development in the entire industry chain — creating sustainable development for all.

Co-CEOs S.Y. Hsu

Co-CEOs Samson Hu