Sustainable Value Creation

ASUS adheres to our philosophy of providing valuable contributions to humanity. Starting from the product life cycle, we motivate the entire value chain to participate in corporate social responsibility, extending the core spirit of sustainable operations to social caring while continuing to establish sustainable corporate competitiveness with an innovative mindset. Starting from the perspective of stakeholders, we took an overview of macro influences on operations of self-owned organizations and product value chains under our brand. We also established a fundamental evaluation framework to monetize economic, environmental, and social influence, where costs and values generated in society by ASUS are considered from a macro perspective.

By presenting the value creation through a monetary value, internally we could review how the positive and negative impacts come from, as well as to promoting the decision-making process and key indicator management with sustainability to further maximizing our value creation. Externally, we applied the framework of Integrated Reporting (IR) published by the International Integrated Reporting Council (IIRC) to disclose ASUS' influences in sustainability to our stakeholders. ASUS expects to continuously bring positive changes to the environment and society, sharing sustainable value with stakeholders.

 

Michael Porter, known as the father of modern management theory, said that corporate social responsibility "can be a source of opportunity, innovation, and competitive advantage." Enterprises should aim at sustainable operation and pay attention to the impact of the company on all stakeholders, society and the environment, so as to create longterm sustainable benefits.

ASUS integrates the sustainability strategy into its operational plans. We believe that thinking of sustainability performances should be the same as economic performances through an quantified assessment tool to provide guidelines for decision makers. ASUS follows the sustainability strategy "digitize data, adopt scientific management practices, and optimize core competencies". We quantify the inputs of our environmental and social projects to establish basic evaluation capabilities for economic, environmental, and social performance using monetary value, which helps to estimate the true value generated from corporate activities, making the overall sustainable performance easy to monitor and seek for improvement.

As early as in 2009, we began to quantify the impact of products on the environment since we announced the type III environmental declaration and the world’s first notebook computer to achieve carbon neutrality. In 2016, in accordance with the Social Return on Investment (SROI) guidelines published by the British government, we monetized the social impact of the digital inclusive program, and in 2017 published the SROI report which was the first in Asia and in Taiwan technology company certified by the Social Value International. In 2018, we referred to the Natural Capital Protocol to monetize the impact of the supply chain on the environment and society, and released the environmental profit and loss assessment (EP&L) report of notebook computer, leading the industry to monetize the natural environment. And finally we established a corporate sustainability value management model based on the Triple Bottom Line (TBL) of economy, environment, and society, and became the 1st company in the information technology company to publish the Total Impact Measurement & Management (TIMM) report, which quantifying the true value of the company. In the future, we will continue to analyze the cost and value generated by ASUS on the environment and society from a macro perspective, review the cross-year performances and sustainable management practices, and implement the vision of comprehensive measurement and management of sustainable development.

ASUS regularly implements stakeholder engagements and identifies material topics. From the perspective of the stakeholders, we evaluate the influence and value of the impact on the stakeholders in four aspects of economy, tax, environment and society. By presenting the value creation using monetary value, we could review sources that bring positive and negative impacts, and use the results for decision making and management to pursue the maximum value.

 

ASUS continued to deepen impacts on material topics. The value creation in 2019 reached NT $19.5 billion1, which increased by 87% from 2018. The increase in positive impacts came from profits, investment, and employee compensation and development. In 2019, the scope of the EP&L program was extended to product categories contributing 90% of the revenues, with the negative impacts from greenhouse gas and water pollution. ASUS has planned the strategy and approaches for the supply chain management, and expects to change the environment and society with its influences, sharing our sustainable value creation with stakeholders.