Sustainability Management

ESG Impact

ASUS embeds strategic sustainability into its operational plans and establishes mid- to long-term sustainability objectives. We believe that managing sustainability performance should be treated with the same rigor as financial performance, providing decision-makers with guiding principles while also serving as a bridge for communication among stakeholders across different domains to co-create sustainability for both business and society. Guided by a fundamental, pragmatic spirit and our strategy of “digitizing data, adopting scientific management practices, and optimizing core competencies” ASUS has, over the years, employed a series of robust methodologies—including Social Return on Investment (SROI), Environmental Profit & Loss (EP&L), and Total Impact Measurement & Management (TIMM)—to build monetized baseline assessment capabilities. We have developed a corporate sustainability value management model based on the Triple Bottom Line (TBL), systematically inventorying the true value of our activities to make overall sustainability performance easy to track, manage, and continuously improve.

In recent years, with the issuance of the IFRS Sustainability Disclosure Standards, the EU Taxonomy, and the EU Corporate Sustainability Reporting Directive (CSRD), financial and nonfinancial performance are being progressively integrated, emphasizing how a company’s ESG impacts influence its financial results.

In response to evolving international sustainability disclosure frameworks and rising stakeholder expectations, ASUS has deployed a comprehensive sustainability management structure to anticipate and implement leading practices. This enables us to address investor concerns, meet diverse stakeholder needs, and provide decision-useful sustainability information. Since 2019, ASUS has reported SASB metrics in its Sustainability Report and, beginning in 2023, has gradually disclosed alignment with the EU Taxonomy and IFRS Sustainability Disclosure Standards. This year, in accordance with CSRD requirements, we are enhancing the transparency and completeness of our sustainability disclosures, laying the groundwork for full alignment and satisfying the information needs of global and varied stakeholders.

Timeline of ASUS’ ESG Impact Monetization Assessments

2009

  • Initiated the quantification assessment of product environmental impacts.
  • Released a Type III environmental declaration and launched the world’s first carbon-neutral notebook.

2016

  • Monetized the social impact of the Digital Inclusion and Education Program.
  • Published Asia’s—and Taiwan’s—first globally certified Social Return on Investment (SROI) report in the technology sector.

2019

  • Following the Natural Capital Protocol, monetized the environmental and social impacts of our supply chain.
  • Released a Notebook Environmental Profit & Loss (EP&L) report.

2019-2023

  • Monetized overall corporate sustainability value creation using the Total Impact Measurement & Management (TIMM) methodology.
  • In 2019, published the information technology industry’s first Integrated Sustainability Value Report.

2024

  • Assessed and disclosed sustainable economic activities and their related financial information in accordance with the EU Taxonomy

Taxonomy Information Disclosure

To promote sustainable development, the European Commission proposed the Action Plan: Financing Sustainable Growth in 2018. The plan aims to establish a common set of standards for sustainable finance to guide capital flows to economic activities that make a real contribution to sustainable development. The plan includes three frameworks: the EU Taxonomy, non-financial reporting disclosure requirements, and sustainable investment solutions tools. Among them, the EU Taxonomy is a classification system for economic activities. The main purpose is to establish a common legal framework to identify whether economic activities that can be considered environmentally sustainable and achieve the objectives of the European Green Deal. In 2020, the EU launched the EU Taxonomy Regulation and defined six environmental objectives and their technical screening criteria (TSC). To be considered as a “sustainable economic activity ”,an economic activity must be able to apply the technical screening criteria and contribute to at least one of six environmental objectives listed in the Taxonomy. It also do no significant harm (DNSH) to other objectives under the minimum social governance safeguards (Minimum Safeguard, MS) premise. It can be considered to comply with “sustainable economic activities”.

Six environmental objects defined by the EU:

  1. Climate change mitigation
  2. Climate change adaptation
  3. Sustainable use and protection of water and marine resources
  4. Transition to a circular economy
  5. Pollution prevention and control
  6. Protection and restoration of biodiversity and ecosystems

The economic activities of enterprises corresponding to the list of economic activities set out for each environmental objective are distinguished as either “Eligible” or “Aligned ”. An economic activity that is eligible and does not meet the technical screening criteria and minimum social safeguards is not aligned. Economic activities listed as “Eligible ” meet the technical screening criteria (TSC) and minimum social governance assurances (MS) for the environmental objectives and do not cause significant harm to other objectives (DNSH). Those listed as “Aligned ” meet the same criteria but also align with the broader environmental objectives. Enterprises are required to disclose financial information for the economic activities covered under “Eligible ” and “Aligned ”, including the percentage of operating income, capital expenditure, and operating expenses.

At the end of 2022, Taiwan ’s Financial Supervisory Commission (FSC) issued the Sustainability Economic Activities Recognition Guidelines, followed by the second edition of the guidelines in 2024. To foster integration of green finance and drive net-zero transformation, these guidelines encourage companies to voluntarily disclose which economic activities comply. The second edition, structured in alignment with the EU Taxonomy, requires that an economic activity make a substantial contribution to at least one of six environmental objectives, while not causing significant harm to the remaining environmental goals or to social safeguards. ASUS ’s computer and peripheral manufacturing and services businesses have proactively reviewed and assessed their core economic activities, confirming that they make a material contribution to the “Climate Change Mitigation ” and “Transition to a Circular Economy ” objectives without causing significant harm to other environmental goals or social safeguards, thereby satisfying the definition of sustainable economic activities.

Climate Change Mitigation

According to the EU Taxonomy criteria, ASUS has identified the following economic activities as contributing to the “Climate Change Mitigation ” environmental objective, using the official EU Taxonomy nomenclature: Electricity generation using solar photovoltaic technology; Storage of electricity; Installation, maintenance and repair of energy efficiency equipment; Installation, maintenance and repair of charging stations for electric vehicles in buildings and parking spaces attached to buildings; Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings In 2024, ASUS ’s capital expenditures and operating expenses related to these Climate Change Mitigation activities accounted for less than 1% of total expenditures; considering the low materiality of this information, disclosure has been deemed unnecessary at this time.

EU Taxonomy Compliance Details:

  • Electricity generation using solar photovoltaic technology: Implemented self-built solar PV installations across global operational sites.
  • Storage of electricity: Expanded rooftop solar PV fields at the headquarters and enhanced energy storage system deployment.
  • Installation, maintenance and repair of energy efficiency equipment: Upgraded underperforming equipment to improve the energy efficiency of the headquarters.
  • Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings): Deployed EV charging stations in the parking areas of operational sites to support electric-vehicle usage.
  • Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings: Enhanced the central monitoring system to optimize energy usage at the headquarters.

Additionally, ASUS has voluntarily disclosed its compliance and sustainability performance for the “Computer and Peripheral Equipment Manufacturing” economic activity under the Climate Change Mitigation objective, following the FSC’s second edition Sustainability Economic Activities Recognition Guidelines1. ASUS’s long-term commitment to green product development includes progressively increasing the use of environmentally friendly materials, implementing low-carbon production processes, and enhancing product energy efficiency, all validated through rigorous international ecolabel certifications. In 2024, ASUS’s “Computer and Peripheral Equipment Manufacturing – Climate Change Mitigation” activity was assessed as “Compliant,” representing 60%2 of the company’s revenue.

Transition to a Circular Economy

According to the EU Taxonomy, ASUS has voluntarily assessed the following economic activities under the “Transition to a Circular Economy” environmental objective: Manufacture of electrical and electronic equipment; Repair, refurbishment and remanufacturing; Sale of spare parts; Product-as-a-service and other circular use- and result-oriented service models; Production of alternative water resources for purposes other than human consumption. ASUS integrates the circular economy model and associated strategies into its operational foundations by incorporating circular supply chains and extending product life cycles, and has implemented a rainwater harvesting system at its headquarters. In 2024, ASUS’s economic activities aligned with the Transition to a Circular Economy objective accounted for less than 1% of total revenue.

EU Taxonomy Compliance Details:

  • Manufacture of electrical and electronic equipment: ASUS promotes environmental labeling using the international EPEAT certification as its primary standard. The EU Ecolabel currently applies only to display products, and ASUS has not proactively applied for it. Under the Taxonomy regulation, products without or not meeting the EU Ecolabel must fully satisfy all eight technical screening criteria3; at present, some ASUS products comply with certain criteria.
  • Repair, refurbishment and remanufacturing: ASUS provides comprehensive repair services to extend product lifespans.
  • Sale of spare parts: ASUS designs its products with modular, easily detachable components and offers spare parts for sale to prolong product lifecycles.
  • Product-as-a-service and other circular use- and result-oriented service models: ASUS offers leasing and subscription-based business models to enable efficient resource use; see “06 Circular Economy: Product Lifecycle Extension – Devices as a Service ” for details.
  • Production of alternative water resources for purposes other than human consumption: ASUS’ global headquarters has achieved LEED Platinum certification in the U.S. and promotes water reuse through a rainwater harvesting system.

The EU Taxonomy provides a consistent framework that aligns with the sustainability topics prioritized by investors and capital markets, enabling companies to clearly showcase their eligible sustainable activities and practices and to enhance transparency in the disclosure of environmental performance and sustainability initiatives. In response to capital market demand for sustainability information, ASUS will continue to strengthen the increasingly important linkage between sustainability and financial performance, while closely monitoring developments in the EU Taxonomy and its technical screening criteria, and progressively refining the definitions and calculations of operating expenses and capital expenditures.

1. According to the technical screening criteria for the Computer and Peripheral Equipment industry in the Second Edition of the Sustainability Economic Activities Identification Guidelines: (1) The product is certified under EPEAT; (2) The product holds a Type I ecolabel recognized under ISO 14024; (3) The product carries ENERGY STAR® or the Taiwan Energy Label; (4) The manufacturer makes a self-declared environmental claim (Type II environmental label) in compliance with ISO 14021—covering “resource savings during manufacturing” or “energy savings during use”—and such claims are verified by a third party.

2. The numerator comprises revenues from products certified under EPEAT, TCO, Green Mark, China Ten Rings, and ENERGY STAR® in accordance with the above technical screening criteria; the denominator is the 2024 consolidated operating revenue of the ASUS Computer Group.

3. Under the EU Taxonomy technical screening for “Manufacture of electrical and electronic equipment,” products without or not meeting the EU Ecolabel must satisfy all eight of the following criteria: design for product life extension; design for repair and warranty; design for reuse and remanufacturing; design for dismantling; design for recyclability; active substitution of hazardous substances; transparency to customers; and producer responsibility. The Taxonomy’s requirements are exacting—for example, “design for product life extension” mandates software updates for at least eight years, and “design for repair and warranty” requires critical spare parts to remain available for at least eight years after the last model launch—both exceeding the standards of current international ecolabels applicable to ASUS.