Energy Management and Addressing Climate Change

Climate change is a contemporary global issue that has profound and far-reaching impacts on, and poses challenges to, human beings. The unfavorable effects are not limited to the economy but also involve many other areas, including society, environment, and politics, and the issue may even seriously affect regional security. For example, the shortage of drinking water resources, the destruction of the ecological environment, and the extinction of species all pose a major threat to the wellbeing and public health of human beings.

Considering that the Paris Agreement aims to keep global warming below 2℃ above pre-industrial levels, global industrial development is expected to shift toward a low-carbon economy. To protect the global financial system from serious impacts during this transition period, the Financial Stability Board (FSB) established the Task Force on Climate-related Financial Disclosures (TCFD) in early 2016. In June 2017, the TCFD officially released the “Recommendations of the Task Force on Climate-related Financial Disclosures” to provide more explicit guidelines on climate change’s financial effects on global businesses.

ASUS Supports Paris Agreement and TCFD Framework

ASUS publically supports TCFD, and we follow the framework to disclose 4 core elements: governance, strategy, risk management, and metrics and targets. For more details, please see ASUS TCFD Report.

Reduction Target

We made the initial reduction target in 2009, promising to reduce greenhouse gas emissions by 15% by 2015 compared to baseline 2008. This goal was reached in advance in 2010 with the cooperation of all employees. To support the Paris Agreement and participate in the global greenhouse gas reduction initiative, we have set a second phase of greenhouse gas reduction targets, promised by 2025:

  1. Greenhouse gas emission volume must be reduced by at least 50% (baseline year 2008)
  2. Energy efficiency of major products must be improved by 50% (baseline year 2013)

Operational Emissions (Scope 1 and 2)

The Nationally Determined Contribution (NDC) target set by the Taiwanese government is to reduce greenhouse gas emissions in BAU by 50% before 2030. Although ASUS is not in an energy-intensive industry with high greenhouse gas emissions, we also take responsibility for reducing said emissions and saving energy. To demonstrate ASUS’ ambition, we have set an absolute target of a 50% emissions reduction by 2025, and this goal is also integrated into ASUS 2020 Sustainability Goals.

Electricity consumption in our offices accounts for 99% of our greenhouse gas emissions. We started to introduce the ISO 50001 energy management system in 2015 to identify high-energy consuming hotspots and equipment, with the aim of gradually improving the energy efficiency to reduce 1% of electricity consumption annually. Meanwhile, as for the choice of location for ASUS’ new building, we chose one that is accessible for mass transportation to reduce the greenhouse gas emissions from employees commuting, while also taking the platinum level-the highest level of green buildings-as the requirement for the construction of the building to reduce the overall environmental impact.

Emission Reduction in Products

According to a report released by International Energy Agency (IEA), in the 2℃ scenario, the global annual increase of 3% in energy use needs to be reduced by half per year. That is to say, under the growth in “business as usual”(BAU) conditions, the energy efficiency of products needs to increase by 54% by 2030. Under such circumstances, ASUS expects that the global product energy efficiency laws will become increasingly strict and pose potential risks; on the other hand, investing in the development of energy-efficient products will also expand the green product market and create business opportunities. As a result, ASUS has integrated its product energy efficiency target into its operational strategy; it aims to increase product energy efficiency by 50% by 2025, which is included in ASUS 2020 Sustainability Goals.

To avoid the risks of the laws regarding global energy efficiency and to create competitiveness in the green product markets, each ASUS laptop needs to meet the requirements of the world’s most stringent Energy Star Program before leaving the factory; even though the Energy Star Program has been updated multiple times and its efficiency requirements have been tightened, ASUS has still adhered to these standards. The latest version of Energy Star came into effect in November 2018, and the requirements in energy efficiency are 50% stricter than the previous version. With the technology of the R&D team, ASUS’ new models of notebooks sold in 2018 were not only 100 % compliant with the Energy Star’s requirements, but the average energy consumption performance was also 29% better than that set forth by Energy Star and was 37% higher than the 2013 baseline.

Other Indirect GHG Emission

Besides emissions from operations and products, we also track other indirect emissions.

Business Travel

Please visit HERE for GHG emission in supply chain.