Supply Chain Climate Engagement | ACER ESG
Supply Chain Climate Engagement
Acer's zero-carbon commitment represents not only Acer's determination to promote zero-carbon emission, but also its vow to collaborate with the supply chain to take positive actions to achieve low-carbon transformation. We are committed to reducing value chain carbon emissions by 35% by 2030 compared to the 2020 base year through supplier climate initiatives, supplier climate capacity building, and supply chain greenhouse gas management strategies.
Earthion Initiative
In 2021, we brought together our employees and supply chain partners to expand the reach of sustainability efforts by launching the Earthion initiative, with the goal bringing everyone together to create a better future and achieve our ambitious goal of a clean planet. Through the Earthion Sustainability Platform, we share the spirit of sustainability with our partners and suppliers, helping to address the environmental challenges of our generation through innovative and integrated solutions. To this end, we are focused on innovative green product design, chemical substance management in production processes, renewable energy use, low-carbon emission logistics, packaging materials and design, and product recycling & reuse, combining the efforts of our suppliers and partners to accelerate the development of green designs and processes and completely minimize our environmental impact.
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For example, we are working with our designers and partners, including Golden Arrow, ShinShin, SunYoung, Quanta and Wistron, to find innovative ways to use environmentally friendly materials without sacrificing the durability and robustness of our products, targeting up to 30% post-consumer recycled plastic content for our core products by 2025. We are collaborating with Compal and Quanta to enhance our waste management system to remove the excess security tape used in the pallet packing process, which is expected to save approximately 5,500 kilometers of tape by 2023, which in total is about the distance from London to New York. We have partnered with logistics partners such as DHL to build a transportation carbon inventory system and improve the accuracy of our transportation carbon calculations through a unified approach to measuring and reporting Acer's greenhouse gas emissions during transportation.
Through the Earthion Sustainability Platform, we share the spirit of sustainability with our partners and suppliers, helping to address the environmental challenges of our generation through innovative and integrated solutions. To this end, we are focused on innovative green product design, chemical substance management in production processes, renewable energy use, low-carbon emission logistics, packaging materials and design, and product recycling & resource reuse, combining the efforts of our suppliers and partners to accelerate the development of green designs and processes and completely minimize our environmental impact.
Climate Capacity Construction
We offer information and training on the latest trends and developments in social and environmental responsibility, helping suppliers better confront the challenge of sustainable development. We continue to invite suppliers to participate in annual supplier ESG communication meetings, CDP project briefings, and major training programs on social and environmental responsibility. This helps them get access to the latest information on global trends, while also presenting opportunities for suppliers to engage in multilateral communication with Acer senior management or relevant industry experts. We invite major suppliers to take part in annual ESG Communication Meetings, where we share the latest global trends in corporate sustainability, human rights issues, and climate mitigation and adaption measures, along with Acer’s requirements of and goals for supply chain ESG management performance.
In 2022, we focused our communication on the digitization of carbon management, and through the new e-ARSM Acer Responsible Supply Chain Management System and Life Cycle Assessment (LCA) carbon footprint system, we will effectively collect and manage carbon emissions at the supply chain end to build the foundation for the company's NetZero carbon emissions promotion. We also invite our corporate partners ,suppliers and their employees to join Acer's "21-Day Challenge" initiative. With a dedicated mobile app, we record each participant's green actions, track the amount of Carbon Emissions reduced during the process, and together we cultivate the habit of reducing, reusing and recycling to expand our impact on the environment.
Supply Chain Greenhouse Gas Management
Acer has joined the CDP supply chain system since 2008, and has further used the ESG scorecard to review suppliers' performance in overall carbon management, carbon reduction results and renewable energy usage, and to manage the environmental impact caused by the supply chain, and to include supplier scores in procurement evaluations to promote the overall supply chain to improve its ability to respond to climate change. In 2022, Acer has been ranked A- on the CDP Supplier Engagement Rating (SER) for three consecutive years, and 60% of our Critical Suppliers have committed to RE100 or science-based carbon reduction targets (SBT), in line with expected targets.
In terms of supply chain responses, 94% of our Tier 1 suppliers have included climate issues in their board-level oversight, 84% have integrated carbon management into their operations and developed carbon reduction plans consistent with the 1.5°C reduction pathway scenario, 86% have taken carbon reduction actions, and 67% are using renewable electricity. We will continue to communicate with Tier 1 and Tier 2 suppliers and work with ODM Suppliers to further influence Tier 3 suppliers, jointly pulling upstream suppliers to deepen the growth potential of carbon management in the industry chain.