Energy and Climate Change

Identify the Climate Risk and Opportunity

In December 2015, the 21st Conference of the Parties (COP21) was held in Paris, France, reaching a global climate agreement. As a global corporate citizen and leading ICT industry brand, Acer supports this agreement’s goals of keeping global temperature increase within 2 degrees Celsius of the temperature prior to the Industrial Revolution, and within 1.5 degrees Celsius if possible. As such, in both our operating locations and our supply chain, we have taken actions that oriented toward Nationally Determined Contributions of each country.

Through our working group on risk management, we continue to consider the potential impacts of climate change, forecasting the probability and potential impact of these risks, drafting contingencies and risk mitigation measures, and developing crisis management and early warning mechanisms to mitigate the impact of risks on operations. Currently, major climate risks that have been identified and will have a more significant effect than in the past include natural disasters, the various national product energy efficiency regulations, consumer preferences regarding the environment and climate-friendly products, we are analyzing and developing countermeasures for the various factors according to their probability of occurrence and their potential impact, and we anticipate seeing a reduction in the impact of climate risks.

With regard to climate change derived opportunities, we not only continue to pursue improvements to product energy efficiency, but also strive to integrate our core businesses and new business groups to create a low-carbon, sustainable “Smart Strategy.” This will enable us to make the most of the expertise of the ICT industry to help all levels of society reduce carbon emissions and make adaptation.

Greenhouse Gas Inventory

Corporate GHG Inventory

Since 2011, Acer has contracted a third-party verification agency with both CDP and Taiwan EPA accreditation to undertake GHG Protocol Scope 1, 2, and 3 inspections of emissions produced by our departments around the world. Through this, we found that the Acer Group was responsible for 19,658.07 tons of Scope 1 and Scope 2 (market-based) carbon emissions in 2016, with Scope 1 emissions primarily from North American and European natural gas usage and global fuel combustion activity. Scope 2 electricity usage approximately goes down to 70% of those emissions because the amount of green energy usage is raising. Total emissions in 2016 were reduced by approximately 53.23% compared with the baseline year. Per capita emissions were approximately 2.537 ton

In addition, in accordance with GHG Protocol Scope 3 principles, we inspect the emissions produced by staff business flights, product and service purchases, product shipping, and leased assets to gain a clearer understanding of carbon risks and opportunities in the value chain and help in the drafting of reduction strategies.

Acer GHG Inventory Scope

Product Carbon Footprint Disclosure

In 2015, we took the lead in joining the Carbon Footprint Calculation Platform established by the Taiwanese EPA. With the cooperation of our major suppliers, we have set out a plan to broaden the carbon footprint inventory across indicator products, completing a carbon footprint report for the Chromebook C740. This cloud-based platform can effectively integrate many parties in the supply chain, providing timely calculation services and greatly reducing operating expenses, as well as accelerating inventory work.

This effort focuses on the office mode of the model, and the results have shown that carbon emissions across the product’s lifecycle total approximately 123.70 kg. The raw materials and the using phases account for greater proportions of that figure, specifically 64.50% and 33.97% of total emissions respectively. The lightweight, quick-booting, quick-connecting nature of the product and the more streamlined components used therein (in comparison with ordinary notebooks) may help reduce the emissions at the raw materials and user ends.

Chromebook C740

Chromebook C740 Lifecycle Carbon Emissions

Greenhouse Gas Reduction

According to Acer's energy and climate strategy, we continue to prioritize energy efficiency at all of our operating locations, with use of green energy the next priority. Where appropriate, we use renewable energy power generation facilities alongside measures such as Renewable Energy Certificates (RECs) or carbon credits to support the development of renewable energy and climate protection plans.

Acer has set emission reduction targets; compared with 2009, in 2016 Acer’s global GHG emissions will reduce by 53.23%, followed by a 60% reduction between 2009 and 2020. Due to the efforts at all of our locations to improve energy efficiency, and at our major operating centers to use green electricity, in 2016 we achieved our goals ahead of schedule. We keep made the reduction in 2017 to 55%.

Clean Energy Plan

In addition to energy saving and the related carbon reduction, Acer is also seeking the opportunity to use renewable energy in Acer's facilities worldwide. Acer's Clean Energy Plan has been decided into 4 steps in different priorities. The first priority of clean energy is to have a green energy initiatives by using renewable energy (RE) in Acer's own facility if the RE condition is available. The second priority is to seek the green electricity in grids and to make advocacy to the governments if there is no green electricity available. The third priority is to seek the suitable regions to build RE facilities worldwide, especially those regions with larger carbon emission by Acer's facilities. The last priority is to procure Renewable Energy Certificates (RECs) or Carbon Credits when the other measures are not available.

Use Green Electricity

In terms of green electricity, in 2016 Acer's use of renewable energy at its operating locations expanded to include Thailand and Malaysia. Usage methods differ by region, with Taiwan setting up its own renewable energy generators, such as solar panels and wind turbines. Since May 2017, the Acer e-Enabling Service Business Inc, the subsidiary company of Acer Group in Taiwan, start to join Taiwan Green Electricity program initiated by Bureau of Energy and National Taiwan Power company and commit using 100% green electricity for their office operation until the end of this mechanism; the US and Canada going through local Green-e certified Renewable Energy Certificates (RECs) primarily; and European countries such as Germany and Spain purchasing renewable energy Guarantees of Origin (GOs). Asia areas like Thailand and Malaysia are purchasing International Renewable Energy Certificate (I-RECs) additionally; Acer's US subsidiary participates in the EPA Green Power Partnership Program and other renewable energy certifications, leading to 100% of the company's electricity within the United Sates coming from wind, solar and other renewable energy sources.

*EPA Top 30 Tech & Telecom website

Renewable Energy Facilities

The e-Enabling Data Center (eDC) in Taiwan is the first of our operations to install green energy facilities. And we extend to set the solar energy generation systems in Aspire Park and Aspire Resort. The total generation amount is about 200 thousand kWh per year. The total Green electricity usage including the self-generation and renewable energy certificates is about 19.8 million kWh in 2015. The proportion of green power in all Scope 2 electricity consumption has risen to about 41%.

Acer Smart Cloud Builder

Acer’s Smart Cloud Builder helps clients build their own cloud. This cloud platform includes high-performance server, storage, network devices, and OS virtualization, along with the Cloud Smart Portal (CSP). Our system provides clients with flexible resource scalability and cross-platform centralized management, making it more agile and a better fit for clients ’ needs. The CSP is a cloud-based “Infrastructure as a Service” (IaaS) management platform built on the Acer e-Enabling Data Center’s accumulated server rooms, systems, network, and information security capabilities.

Through Acer’s cloud computing solutions, clients can enjoy reduced capital expenses and operating costs, saving on overall expenses and taking a further step toward reduced electricity usage and greenhouse gas emissions. Taking a traditional 30U server rack as an example, the Acer cloud platform requires only 9U, using a greatly reduced amount of space and resources while also saving as much as one million kilowatt-hours of electricity (kWh). The Acer cloud platform can combine server resources and improve resource utilization efficiency, while also automatically monitoring resource utilization efficiency to provide a variety of relevant reports and help clients better understand how their ICT resources are being used. By helping clients in business, academia, the medical field, and government reduce the space and resources they use, we also help them increase operating efficiency and reduce their greenhouse gas emissions.

Supply Chain GHG Management

Managing Climate Issues and Greenhouse Gases Emissions in the Supply Chain

Acer has been a member of this CDP program since 2008, and we have encouraged our suppliers to respond questionnaires from the CDP regarding greenhouse gas emissions and policies in response to climate change. This information has then been made public or disclosed to members of the CDP Supply Chain Program. As of the end of 2016, Acer was the only company from Taiwan to be a participant in the international Carbon Disclosure Project Supply Chain Program, with suppliers performing better than the global average.

In 2016, we continued to participate in the Carbon Disclosure Supply Chain Program, with the response rate of CDP surveys of Acer suppliers at 86%, up on 2015’s 80%. Overall performance was rated a C, remaining above the global average of D. In terms of performance in several key items, such as Scope 1 and Scope 2 emissions disclosure, climate risk identification and disclosure, and carbon reduction targets, performance was also above the global supplier average.

Our vendor CSR scorecard continues to address tier one and tier two suppliers' overall carbon management, carbon reduction results, and green energy usage status, amongst other items. these evaluations also include whether or not the group's greenhouse gasses inventory and verification has been completed for the year and whether or not the supplier reached its intensity reduction target of 5% and its green electricity or renewable energy usage. In the medium term, one of our key issues is supply chain management in product operations, as through this we will be able to elevate the overall performance of our supply chain in responding to climate change.

In 2016, we continued working with the CDP China Office, with a particular focus on providing Acer online courses for suppliers located in China to boost suppliers’ ability to respond to climate change and stakeholder concerns. In meetings, we again stressed Acer’s commitment to GHG management/ reduction and the expanded use of green energy in our supply chain.

Target of 2018:
1. Enhance the suppliers' average performance to B
2. Increase the average reporting emission reduction rate to 85%

Supplier Training

Acer foundation keeps sponsoring the CDP event twice a year in Taiwan and invites our suppliers to join and learn more updated practices for carbon management and climate issues.

In January 2015, the World Resource Institute announced new Scope 2 Accounting Guidance focused on the calculation and disclosure of renewable energy and green electricity in greenhouse gas inventories. This aims to encourage businesses to adopt renewable energy sources as a means to reduce carbon emissions while providing guidelines for the follow-up disclosure thereof. In June 2015, we co-work with the Business Council for Sustainable Development of Taiwan to provide suppliers with free education and training in the new Scope 2 Accounting Guidance and they could get more clear definition of the green electricity and renewable energy also how to take these as key approached to reduce the carbon emission. We have also coordinated these efforts with our vendor CSR scorecard requirements in the hopes of further reducing overall supply chain carbon emissions.

In the January 2017 CDP Global Supply Chain Program report, particular note was made of Acer’s concrete achievements in terms of long-term support and cooperation with suppliers to actively manage carbon and incorporate feedback from suppliers.