The era of pandemic-driven market demand came to an end in 2023, resulting in global industries facing decreased demand and challenging economic conditions. ASUS views these challenges as incredible opportunities for a complete corporate transformation, especially amidst the explosive AI megatrend and is committed to embracing this once-in-a-lifetime paradigm shift to become a comprehensive AI enterprise. This includes actively recruiting AI talent, strategizing the transformation, and inspiring all ASUS employees to foster their collective wisdom. Together, the entire ASUS team will seize the opportunities presented by the AI revolution in pursuit of making ASUS the world’s most admired innovative leading technology enterprise in the new digital era.

Global risks are becoming more diversified, as indicated in the Global Risks Report 2024, published by the World Economic Forum. Climate change, technological acceleration, and geopolitical shifts are currently influencing the global risk landscape. Therefore, sustainable operations should not only involve developing strategies and actions, but also include a meticulous and comprehensive evaluation of potential risks and their impact on the enterprise. To strengthen the ability to withstand risks, ASUS has established the Business Continuity Management Committee. Composed of independent directors, this committee facilitates consideration of perspectives from both internal and external stakeholders, implementation of interdepartmental risk management mechanisms, and proactive management of operational strategies. These measures ensure efficient long-term governance and risk mitigation. The International Sustainability Standards Board (ISSB) released its Sustainability Disclosure Standards (IFRS S1/S2) in 2023. These standards guide companies in disclosing sustainability and climate-related risks and opportunities that may impact financial performance. The standards focus on four key areas: governance, strategy, risk management, and metrics and targets. By following these standards, companies can develop management plans and address prominent issues that impact their financial performance.

In line with the principle of stakeholder communication, ASUS has released a Task Force on Climate-Related Financial Disclosure (TCFD) report for this fiscal year. The report incorporates cross-industry metrics of IFRS S2 Climate-Related Disclosures to improve the assessment of the financial effects of climate risks and opportunities. Additionally, ASUS has adopted the Task Force on Nature-Related Financial Disclosures (TNFD) framework and published a Natural Impact Assessment report. This report evaluates the impact and reliance of operational activities and supply chains on natural resources using the environmental profit and loss (EP&L) methodology, in compliance with the Natural Capital Protocol. It provides a vital basis for making informed decisions on the development of low-carbon products and the management of supply chains.

Guided by the "In Search of Incredible" brand spirit, ASUS has garnered widespread recognition in the global market for exceptional innovation and sustainable business practices. In 2023, ASUS was named one of the "World's Best Companies" by TIME magazine, featured on Fortune magazine’s "World's Most Admired Companies" list for the ninth time, and recognized by Interbrand as the most valuable global brand in Taiwan for the tenth year. Looking ahead, the ASUS team will continue to respond to industry turbulence and uncertainty with a strong and resilient corporate culture, identify global challenges and innovation opportunities, and translate them into concrete strategies that enhance the company’s competitive advantage. Additionally, ASUS will integrate sustainable risk and opportunity management into operational policies, creating a more inclusive and growth-oriented enterprise. These efforts support the ASUS vision of becoming the world’s most admired innovative leading technology enterprise in the new digital era.

Chairman Jonney Shih

In 2023, the PC industry underwent significant technological innovation and market-driven transformation. ASUS, guided by its pragmatic corporate spirit, viewed the various external challenges as opportunities for "transformation and evolution", and continued to regard innovation as the cornerstone for enhancing its competitiveness.

ASUS has undergone significant transformation in its product development. Alongside its continuous innovation and growth in the personal computer and gaming industries, the Company is dedicated to expanding its portfolio of AI products, services, and solutions. This commitment aims to enhance the user experience and cater to the diverse needs of customers across a wide range of industries. These efforts highlight ASUS’s prominent role in the AI PC, AI server, and AIoT domains.

ASUS implements a sustainable strategy of "digitizing data, adopting scientific management practices" and integrates sustainable transformation into its core brand strategy. In 2023, ASUS Group’s carbon reduction target for 2030 was reviewed and approved by the Science Based Targets initiative (SBTi), an authoritative organization on international climate change. ASUS Group is dedicated to achieving its carbon reduction goal by following the 1.5°C reduction pathway.

ASUS is also dedicated to the development of low-carbon products. In 2022, it successfully obtained product carbon footprint certification for its first commercial notebook computer and subsequently introduced carbon-neutral certified notebook computers for both commercial and consumer use. To help customers achieve their carbon reduction targets, we launched the ASUS Carbon Partner Service in 2023. This service enables customers to buy high-quality carbon credits when purchasing products, thereby offsetting the remaining carbon emissions produced by the products.

In addition to prioritizing its own research and development, ASUS has embodied the spirit of leading by example and has assisted smaller entities with guidance on carbon reduction. In recent years, ASUS has actively promoted the Carbon Reduction Engagement and Counseling Program for its key suppliers. Furthermore, ASUS introduced the "A+ ESG Carbon Data Management Platform" in 2023, which aids its Group subsidiaries and supply chain in systematically collecting carbon emissions data and maintaining a greenhouse gas inventory.

ASUS is committed to driving sustainable transformation and evolution, and its performance in sustainable management has been widely recognized across the industry. In addition to being selected in multiple international ESG rating indexes, ASUS has been recognized as a climate leader in the Asia- Pacific region for two consecutive years (Climate Leaders Asia-Pacific, 2022-2023) by the Financial Times. In 2024, ASUS was ranked among the top 25 companies on the Clean200 list published by Corporate Knights. Additionally, the Company received high ratings for its leadership in the Carbon Disclosure Project (CDP) "Climate Change" and "Supplier Engagement" assessments.

2024 is a year filled with opportunities, and ASUS Group is confident in its ability to succeed. In the midst of the global AI revolution, ASUS will continue to embrace the principles of "fostering our collective wisdom" and "embracing an idea meritocracy" so that the Company can evolve into a comprehensive AI enterprise. With diverse growth engines and a strategic approach to corporate development, the goal of ASUS is to establish itself as a world-class leader among environmentally-friendly high-tech brands.

Co-CEOs S.Y. Hsu

Co-CEOs Samson Hu