Environmental Profit and Loss

Environmental Profit and Loss

Environmental Profit and Loss

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2025 sustainability goals and implemented management plans

30

%

For Greenhouse Gas: Ensure that our key suppliers achieve a 30% reduction in carbon emissions intensity rates by 2025

100

%

For Water resources: Help all suppliers receive ISO 14001 certification by 2025

0

Waste to Landfill

For Waste: Extend the Zero Waste to Landfill program from ASUS headquarters to key suppliers and set the waste diversion rate

The concept of an EP&L assessment is to map the impact of business activities on the environmental and social impact pathway and then monetize the environmental impact, such as the amount of agricultural ecological loss caused by greenhouse gas of climate change, and the impact of water pollution in reducing regional recreational value. The EP&L assessment facilitates the comparison of different environmental impacts and optimizes the quality of decision-making.

In 2018, ASUS and PwC collaborated on the first EP&L assessment project for laptops. According to the characteristics of the product manufacturing process, four environmental indicators — greenhouse gas, water resources, waste, and water pollution — were selected, and the total environmental impact of the product life cycle from extraction to component manufacturing, product assembly, and ASUS operations was calculated. ASUS became the first tech company in the world to publish an EP&L report. To fully understand the overall environmental impact of ASUS' operations and suppliers, we have added one category of major products in the data coverage each year to expand the scope to 90% of the products revenue.

Step1.

Input

Energy resources required for business activities.

  • Examples: 8,000 tonnes of water, 100 million kWh electricity, ect.

Step2.

Output

How much environmental pollution emissions

  • Examples: 300 million tonnes of greenhouse gas, 2,000 kilograms of phosphorus pollutants, ect.

Step3.

Outcome

Changes to the environment

  • Examples: Human health loss, ecosystem loss, ect.

Step4.

Impact

Impact on society

  • Examples: Human health loss, ecosystem loss, ect.

Step5.

Value of Impact

The Value lost due to the impact

  • Examples: Reduced Property, reduced entertainment value, ect.

供應商環境衝擊調查

By analyzing the impact of environmental indicators, we identified water pollution as the most severe impact. It is followed by greenhouse gas, and the water resources accounted for the smallest share.
By analyzing the impact of environmental indicators, we identified Tier 3 extraction of raw materials as the most severe impact. It is followed by Tier 1 OEM assembly, and the impact of the operation by ASUS accounted for the smallest share.

Reduce Environmental Impact

Based on the results, we identified the impact of hot spot in the product life cycle as the water pollution in the extraction of raw materials. We thus decided to invest management resources and formulated management strategies:

  • New suppliers must have ISO 14001 certification, and we will assist continuous trading suppliers who do not have it to obtain the ISO 14001 system.
  • Motherboard manufacturers are required to provide the annual wastewater test reports and make sure that it meets the environmental standard.

By analyzing more than 100,000 data entries from environmental footprint surveys over the years, we identified significant sources of emission in the production of 9 catagories of key components, including display panels, motherboards, IC, cables, power supplies, mechanical components, keyboards, batteries, and hard drives, as well as OEMs for 4 categories of products in laptops, desktop computers, display monitors, and motherboards. We referenced the "Greenhouse Gas and Water Security Questionnaire" of the Carbon Disclosure Project (CDP) to conduct an inventory of the 149 key suppliers. The results of the inventory in 2021 were as follows:

1076291

tCO2e

Total emissions of Scope 1 and Scope 2: 1,076,291 tonnes CO2e

21

%

21% of the suppliers responded that they have used renewable energy in the form of solar energy

54

%

54% of the suppliers responded that they have set greenhouse gas reduction targets

536

million liters

Total water consumption: 5.36 million liters

52

%

52% of the suppliers responded that they have set water resource consumption reduction targets

29000

tons

Total hazardous industrial waste: 29,000 tons

100

%

100% of the suppliers responded that they have appointed qualified waste disposal service providers