Green Supply Chain Management

With the increase of global environmental awareness, supply chain management is now adding environmental elements to the conventional production management centered paradigm. In other words, environmental protection principles have been included in supply chain management mechanisms. Acer and its suppliers are interdependent and therefore should work together towards the establishment of a green supply chain management system.
Environmental Management System
Acer demands that its first-tier suppliers establish an environmental management system. Currently all of them are ISO14001 certified.
Eco Product Requirement
All of Acer's suppliers should meet the Eco Product Requirement put forward by Acer. The requirement covers aspects such as energy saving, easy recycling, low toxicity, battery usage, materials labeling, and packaging materials.
Restricted Chemical Materials Management
Acer’s management of suppliers’ use of hazardous chemical substances can essentially be divided into three systems: Environmental Standard Requirements, Qualified Product Assurance (QPA) and Compliance Assurance System (CAS). This dual stage management framework guarantees product quality and ensures the restricted use or elimination of hazardous chemical substances.
Environmental Standard Requirements
Acer environmental standard requirements include: Eco-product requirements, Guidance of Restricted Substances in Products and a Green BOM list. Acer provides these three documents to suppliers and requests compliance with related standards.
- Eco Product Requirement
All of Acer's suppliers should meet the requirements put forward by Acer. The requirement covers aspects such as energy saving, easy recycling, low toxicity, battery usage, materials labeling, and packaging materials. Additionally, suppliers must provide Acer with related product environmental data, which will be regularly compiled and issued by Acer.
- Guidance of Restricted Substances in Products
In order to better comply with stricter international environmental regulations regarding the use of chemical products and to more conscientiously control the use of chemical materials in the manufacture of company products, Acer compiled a new 「Guidance of Restricted Substances in Products」 at the end of 2006. The guidance divides chemical materials into three categories: prohibited materials, current restricted materials and future restricted materials. Future restricted materials are further divided into two more categories: those having an established schedule for restricted use and those currently under evaluation for restricted use. Materials under evaluation for future restricted use are handled based on prevention principles. They are placed on a future restricted material list for review from which a schedule is then drawn up for phasing out their use. The execution of the schedule then proceeds with verification, technological analysis and substitute material testing according to the HSF plan. Testing is conducted to determine whether any substitute technology will influence the quality, safety and reliability of finished products as well as to determine any possible adverse affects on human health or the environment.
- Having an established schedule for restricted use: BFRs, PVC, Phthalates.
- Currently under evaluation for restricted use: Antimony, Arsenic, Beryllium, Bismuth, Selenium.
- Green BOM
All suppliers are expected to conduct product chemical material use inspections based on this model. The scope of these inspections include article 5.1 of the guidance concerning ‘prohibited materials’ and article 5.2 concerning ‘currently restricted materials.’ The results of the inspections should be recorded on the Green BOM, showing the ratio of hazardous chemical material contained in each part before submitting the list to Acer. Submitting the Green BOM list is a preliminary step to determine whether suppliers are carrying out the stipulations in the「Guidance of Restricted Substances in Products」.
Qualified Product Assurance (QPA)
It is to ensure that primary component suppliers have the capacity to provide equivalent quality products based on Acer’s new environmental protection standards. Currently, all of Acer’s suppliers and major component suppliers have completed this first phase of assurance and are already supplying products that comply with Acer’s environmental protection standards.
Compliance Assurance System (CAS)
After implementing the product Qualified Product Assurance (QPA) phase, Acer then focuses on the CAS of its suppliers, because we believe that suppliers can effectively minimize risks with a quality management system. There are two levels in this managerial approach:
- Product Testing and Sampling
Each supplier must submit an appropriate product test report in order to demonstrate compliance with the 「Guidance of Restricted Substances in Products」. Additionally, we carry out sampling test plan on any dubious product in order to ensure Acer products adhere to our pledge to meet environmental protection standards.
- Onsite Audits
The scope of these audits includes both system and manufacturing. System audits comprise execution conditions and results. Our suppliers’ management systems and inspection of the manufacturing processes continuously ensure that production complies with Acer’s environmental protection standards quantity and quality requirements. Acer has a regular inspection plan with suppliers in order to enhance evaluations for the suitability of chemical component use in products. This plan seeks to weed out any chemical components that do not meet standards listed in the Guidance of Restricted Substances in Products or any future environmentally problematic materials. Acer hopes that this plan will help reduce the volume of chemically hazardous materials being used in the future.

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