ISO 20400 Sustainable Procurement

ASUS Supply Chain

As a global leader in information communication technology industry, ASUS has cooperated with more than 700 suppliers, including product assembly plants and component suppliers, mainly located in China. Please see the figure for regional distribution.

 

 

 

We define the critical suppliers by purchase amount, supply limitation, and key technology. Critical suppliers are vital partners for ASUS in providing assurance of smooth launching regarding the mass production of products. We commit our resources to assist suppliers in sustainable management for the assurance of sustainable production.

ISO 20400 Sustainable Procurement

According to the Global CEO Survey conducted by PricewaterhouseCoopers, supply chain disruption is one of the top 10 threats to companies. Likewise, more than 50% of CEOs have begun to adjust their supply chain management and pro-curement strategies. A sustainable supply chain has become an important part of business continuity. According to The Electronics Industry Procurement Analysis Report, more than 60% of enterprise spending is on the supply chain. Procurement management is an aspect of showing corporate social responsibility and is a critical mechanism for driving the supply chain forward to achieve the goal of sustainability. The Supply Chain Risk Management Practices published by US National Institute of Standards and Technology (NIST 800-161) identify sustainability as a vital aspect of risk management.

ASUS reshaped its supply chain management in accordance with the ISO 20400 Sustainable procurement guidelines, making sustainability one of the key considerations for procurement. We identify that perpetual risks such as human rights, labor safety, environment, and integrity operations exist in extraction, component manufacturing, and product assembly stage based on factors such as supply chain industry characteristics, cooperation strategies, procurement models, and geographic relationships, and we later formulate sustainable management strategies for the environment, society, and governance to drive the sustainability transition of the supply chain.

ASUS sustainable procurement has been certified by the third party SGS, to prove that ASUS has implemented sustainability in its procurement policy and practice, and has been issued the world's first ISO 20400 certification with high rating, becoming a benchmark case of sustainable procurement. We are building up a sustainable supply chain with the influence of ASUS' purchasing power.