Environmental Profit and Loss Assessment

In 2018, ASUS and PwC collaborated the first environmental profit and loss assessment project with a notebook computer. 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, componenet manufacturing, product assembly, and ASUS operations, was calculated to be approximately US$347 million. ASUS also became the 1st technology company to publish Environmental Profit and Loss (EP&L) report.

In order to fully realize the overall environmental impact of ASUS operations and suppliers, in 2020 we expanded the data coverage rate to 90% of the products revenue, including: notebook computers, desktop computers, mobile phones, motherboards, displays. The total environmental impact of greenhouse gases, water resources, waste, and water pollution was approximately US$642 million.

According to the analysis, water pollution had the largest impact among all environmental aspects, followed by greenhouse gas, and water resource the least.

For the analysis of the impacts on the supply chain, Tier 3 extraction was the largest, followed by Tier 1 product assembly, and Tier 0 ASUS operations the least.

Based on the results, we identified the environmental hot spots in the product life cycle was the water pollution in extraction and thus we decided to put the resources in management and formulated the management strategies:

  • New suppliers must have ISO 14001 in place, and we will assist existing suppliers who do not have it to obtain the ISO 14001 system
  • The motherboard manufacturers are required to provide an annual wastewater test report to show compliance to the regulation

Reduction of Environmental Footprints

Analyzing more than 100,000 data from environmental footprint surveys over the years, weidentified significant emission sources in the manufacturing process of 9 key components,including: panels, motherboards, IC, wires, power supplies, mechanical components, keyboards,batteries, hard drives, as well as OEMs for notebook computers, desktop computers, monitors,and motherboards. According to the "Carbon Disclosure Project (CDP) Greenhouse Gas andWater Resources Questionnaires", key vendors were surveyed. The results of the 2020 inventorywere as follows:

Greenhouse Gas

  • The total emissions of Scope 1 and Scope 2: 587,663 metric tons/CO2e
  • 13% of ASUS production lines used renewable energy-ssolar
  • 60% of suppliers set greenhouse gas reduction targets, and the percentage of suppliers who set reduction targets over the years was as follows:

Water Resource

  • Total water consumption of manufacturing process: 20.5 million cubic liters
  • 100% of the waste water of motherboard supplier met the legal standards
  • 66% of suppliers set water reduction targets, and the percentage of suppliers who set reduction targets over the years was as follows:

Waste

  • Total amount of industrial waste generated: 35 million metric tons
  • 100% of suppliers entrust qualified waste disposers

 

In order to reduce the environmental footprint, we have formulated 2025 Sustainability Goals to promote various management plans

  • Greenhouse Gas: Ensure that key suppliers achieve a 30% reduction in carbon intensity rates by 2025
  • Water Resource: Assist all suppliers to receive ISO 14001 certification by 2025
  • Waste: Extend the Zero Waste to Landfill program to key suppliers and set the waste conversion rate