Sustainable Procurement
ASUS advances sustainable procurement, partnering with 599 suppliers worldwide to foster a multinational, multi-tiered, and highly specialized supply chain ecosystem. We have integrated sustainability principles into procurement decisions and supplier management processes, promoting responsible manufacturing and the implementation of sustainable practices across all stages of the product life cycle, from product design, raw material sourcing, and manufacturing to product use and end-of-life recovery. Through these efforts, we continue to strengthen supply chain resilience and transparency.
To address the complexity of Group operations and supply chain management, ASUS has, since 2024, incorporated key subsidiaries in which it holds more than 50% ownership, exercises operational control, and conducts manufacturing activities into a unified management framework. Through a Group-level governance mechanism, ASUS aligns supply chain management standards and operating procedures to ensure consistent and rigorous management requirements across the Group in relation to responsible manufacturing issues, including labor and human rights, environmental protection, and business ethics.
We categorize suppliers according to our procurement model into three types: raw material manufacturers, component manufacturers (including panel suppliers, motherboard producers, IC component suppliers—such as CPU, SSD, HDD, RAM, and GPU manufacturers—and power supply providers), and product assembly facilities . We identify key suppliers based on procurement amount and key technical indicators.
Procurement Amount Ratio of Tier 1 Key Suppliers
| Supplier Categories | Description | The Number of Suppliers / Procurement Ratio |
|---|---|---|
| Tier 1 Suppliers and Product Assembly Facilities | All continuously trading suppliers | 599 |
| Tier 1 Key Suppliers | Supplier categories2 with potential sustainability risks, including high carbon emissions, environmental pollution, and labor and human rights issues, as well as suppliers that cumulatively account for 90% of the total procurement value |
163 |
| Non–Tier 1 Key Suppliers | Key Plastic Manufacturers | 3 |
ASUS considers sustainable procurement a critical factor, integrating environmental, social, and economic indicators into supplier evaluations, and requiring suppliers to comply with relevant laws and regulations to ensure the sustainability of the supply chain. Our measures for promoting sustainable procurement include:
- Formulating a Sustainable Procurement Policy that clearly defines our goals and principles as guidelines for supply chain sustainability.
- Incorporating sustainable procurement requirements into the Supplier Code of Conduct to communicate ASUS’ expectations to suppliers.
- Establishing a supplier sustainability assessment mechanism that integrates sustainability criteria into supplier selection and risk management indicators, and promotes continuous improvement through regular audits.
- Enhancing suppliers’ sustainability management capabilities to reduce environmental impact, improve labor rights, and strengthen supply chain resilience and accountability.
- Raising procurement personnel’s sustainability awareness by making sustainability trends and management practices mandatory training for procurement and outsourcing management teams.
Risk Evaluation and Classification Management
The management consists of three phases-new supplier approval, continuous risk management, and performance evaluation. These phases apply to product assembly facilities, component manufacturers, and raw material manufacturers. This approach ensures that all supplier categories are incorporated into the sustainability management framework.
Phase 1
New Supplier Approval
To ensure that the supply chain meets ASUS's requirements for quality, environmental management, and social responsibility, suppliers must satisfy the qualification criteria for ASUS-approved suppliers. This includes maintaining valid ISO 9001 and ISO 14001 management system certifications and signing the ASUS Code of Conduct Compliance Declaration, thereby committing to comply with the ASUS Supplier Code of Conduct and related management requirements governing labor and human rights, environmental protection, business ethics, and management systems. Suppliers are also required to comply with applicable trade compliance and export control laws and regulations and to ensure that their supply chains are not involved in any form of forced labor or human trafficking.
Phase 2
Continuous Risk Management
ASUS has established a supplier risk indicator system across four dimensions—geographic risk, product and industry risk, enterprise risk, and supplier criticality—to systematically identify supply chain risks. The assessment covers geopolitical and human rights risks, labor management, living wages, greenhouse gas emissions, water resources, waste, and process chemicals, and also incorporates risk amplification factors such as supplier size, procurement value, and product criticality. Each year, we target all continuing suppliers, as well as those suppliers and product assembly facilities with quarterly procurement amounts reaching NT$2.5 million, to conduct supplier risk self-assessments.
Suppliers that self-assess as high risk, or those with prior environmental or social adverse events, undergo second-party or third-party onsite audits per the ASUS Supplier Code of Conduct; medium- and low-risk suppliers are subject to thematic or document audits. The annual audit scope covers product assembly facilities and component manufacturers.
Furthermore, all suppliers must participate in annual surveys covering Responsible Minerals, Greenhouse Gases, Water Footprint, and Waste. Through audits and capacity-building support, ASUS manages potential risks related to labor, health and safety, environment, and business ethics, preventing adverse impacts on governance, environment, and society, thereby ensuring a stable and sustainable supply chain.
Phase 3
Performance Evaluation
In our Quarterly Business Review (QBR), ASUS evaluates traditional metrics—quality, cost, technology, delivery, and service—alongside sustainability performance indicators such as ethical business conduct, environmental protection, labor rights, and occupational health and safety. The outcomes of these evaluations inform order allocation and decisions on ongoing partnerships: top-performing suppliers are awarded additional resources, and we leverage our brand influence to drive continuous improvement across the supply chain.
If a supplier violates any corporate social responsibility requirements and significantly impacts the environment or society in the country of operation, or fails to pass audits for two consecutive years, ASUS reserves the right to terminate or dissolve the contract or collaboration at any time.
Audit and Continuous Improvement
To ensure suppliers comply with ASUS’s management requirements on human rights, occupational health and safety, and environmental protection, in 2025 ASUS conducted 201 new supplier audits and 115 annual audits. The annual audits comprised second-party and third-party on-site audits conducted in accordance with the ASUS Supplier Code of Conduct, uncovering a total of 1,069 nonconformities, with an overall corrective-action completion rate of 90%. The remaining 10% consisted of working-hour-related improvement items under ongoing follow-up, with the associated risks reduced to a low-risk level in accordance with RBA management standards. At the same time, all ASUS auditors have completed RBA audit training and obtained certification, continuously strengthening our supply-chain management expertise and execution effectiveness.
Analysis of the 2025 audit results reveals that high-risk nonconformities were concentrated in three areas —labor practices, occupational safety, and environmental management —particularly among high labor-intensity suppliers such as product assembly facilities, mechanical-parts producers, panel suppliers, motherboard manufacturers, power-supply providers, and battery suppliers. ASUS requires suppliers to remediate priority nonconformities within 30 days, major nonconformities within 90 days, and minor nonconformities within 270 days. The failure rates and remediation rates for each category are presented in the report.
For nonconformities related to excessive working hours that remain unresolved, ASUS employs a continuous monitoring and support mechanism, requiring non-compliant suppliers to establish working-hours management and monitoring systems and to report monthly performance for six consecutive months, thereby mitigating overtime risks and ensuring compliance with local regulations and RBA minimum standards.
Improvement Actions
ASUS holds assistance meetings to support suppliers in improving their performance, providing industry best-practice examples to facilitate peer exchange of management experiences. Through sustained coaching, all audit deficiencies have been fully remediated, and the high-risk working-hours issues have been reduced to a low-risk level recognized by the RBA, with ongoing monitoring maintained. Under the established audit and management framework, over 3,000 employee interviews have been conducted over the years, cumulatively safeguarding the fundamental rights of more than 490,000 employees. In 2025, no supplier was disqualified from transactions due to any significant adverse incident.
| Labor Employment | Occupational Safety | Environmental Management |
|---|---|---|
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Supplier Grading Management
ASUS adopts the Responsible Business Alliance (RBA) Code of Conduct and applicable regulations as the baseline requirements for supplier management. Leveraging accumulated audit findings, assessment data, and engagement feedback, ASUS has established a supplier management database to serve as the foundation for implementing sustainable grading management. Based on each supplier’s sustainability management maturity and its strategic relevance to ASUS’s business, suppliers are classified into four tiers—Strategic, Potential, Evolving, and Developing—with differentiated management strategies applied accordingly:
The grading management mechanism helps ASUS allocate management resources efficiently by tailoring management measures to each supplier category, enhancing communication efficiency and remediation effectiveness, and progressively strengthening the overall supply chain ’s sustainability performance and operational resilience. This mechanism also responds to increasingly stringent international regulations, brand and customer requirements, and investors’ expectations for ESG risk control, demonstrating ASUS’s proactive commitment to a responsible supply chain.
In 2025, ASUS introduced a sustainable supply chain management platform that integrates supplier basic information, risk tiering, audit results, inventory data, and improvement progress, progressively advancing digital governance across the supply chain. Through platform-based management, ASUS strengthens information integration, risk monitoring, and collaboration efficiency between the Group and its suppliers, improving the consistency, transparency, and decision-making quality of grading management.
In 2025, leveraging supplier industry attributes and global material issues, ASUS continues to focus its enhanced management actions on the following key areas:
- Human Rights: Centered on “living wage” and “employee organizing rights,” ensuring suppliers comply with international labor standards to safeguard workers’ basic livelihoods and freedom of association.
- Environmental: Concentrating on“biodiversity,” “process chemicals,” and “water resource management,” employing hotspot identification, project-based support, and improvement actions to mitigate the supply chain’s impact on the natural environment and to strengthen preventive management in high-risk regions and processes.
ASUS continuously strengthens its supply chain management through scientific methods and a risk-based approach, investing resources to collaborate with suppliers in upholding human rights and environmental responsibilities, thereby building a resilient and sustainable supply chain.
ASUS has expanded the implementation of the Responsible Business Alliance (RBA) Code of Conduct and framework to encompass ASUS' group. The management methods are detailed in the case study: