ISO 20400 Sustainable Procurement
ASUS Supply Chain
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.
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.
We define the key suppliers based on the procurement amount, supply limitations, key technologies, and other indicators, and work closely with key suppliers to maintain stable material supply and services. We help suppliers to build a safe workplace, to protect the health of staff, to reduce the environmental impact caused by factories, and assist suppliers in sustainable management to ensure stable production.
ISO 20400 Sustainable Procurement
We believe that the sustainable corporate management should not be limited to the company itself. Instead, we must conscientiously detect and manage the indirect environmental and social impacts that may be caused by the supply chain. According to the ISO 20400 Sustainable Procurement Guidelines, we considered not only traditional factors such as the quality, delivery schedule, cost, and services in ASUS' supply chain management, but also included the suppliers' sustainability performance as important management indicators. We identify sustainability risks in human rights, occupation safety, environment, and ethical operations in stages such as raw material extraction, parts manufacturing, and product assembly, and develop environmental, social, and governance sustainability management strategies to power the sustainability transformation of the supply chain.
ASUS' sustainable procurement passed the third-party performance evaluation of SGS with ISO 20400 standards and obtained the world's first ISO 20400 certification with a high rating in 2020, becoming a benchmark case of sustainable procurement. It proves that ASUS implements sustainability in its procurement strategy and procurement practices. We are building up a sustainable supply chain with the influence of ASUS' purchasing power. We will evaluate the reactivation of sustainable procurement performance evaluations based on changes in the management framework.
