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Our Supply Chain

Acer' first-tier suppliers can be grouped into five main categories according to the products or services they supply: ODM/OEMs, key components, assigned suppliers, logistics, and services. Our manufacturing suppliers are distributed around the globe, including Taiwan, China, Malaysia, Thailand, the Philippines, Singapore, Vietnam, India, Brazil, and Hungary, although our primary production base is China.

 

We identify critical suppliers based on purchase spending; non-substitutability; strategic material, product, or business; and leading technologies. We support striking a balancebetween local procurement and supply chain diversification. In addition to reducing overall supply chain carbon emissions and creating local employment opportunities,we can also reduce overall supply chain risk. In 2018, Acer' local procurement in our major production base (China) exceeded60%.

 
 

Labor Rights

At the core of Acer' responsible supply chain management is the idea of putting people first. As such, we strive to protect the rightsand health of labor and provide safe workplaces. We have established a complete system of supply chain labor rights management,including conducting risk assessments, on-site audit, and education and training for suppliers, as well as conductingsupply-chain-focused human rights training for Acer employees in positions relating to supplier management. To ensure that thehuman rights of those throughout our entire supply chain are protected and that they are treated appropriately, we also adhere tothe California Transparency in Supply Chains Act and the UK Slavery and Human Trafficking Statement.

   

Supply Chain Labor Rights Management Process

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Supplier Risk Assessments

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Supplier Audits

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Supplier Declaration

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Internal Professional Training

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Supplier Training

 
 

Child Labor and Forced Labor

We have also address high-risk violations of human rights such as child labor and forced labor through the establishment of a Slavery and Human Trafficking Policy and Measures for Remediation Child Labor and Forced Labor. These provide complete definitions and remedial measures, and as soon as any relevant violations occur, our supply chain must follow these, ensuring that the affected workers have their basic human rights protected and are treated appropriately. Our ultimate goal is to eliminate the very possibility of slavery or human trafficking occurring in our supply chain.

 

Child Labor

Child labor refers to the employment of children in any work that deprives the children of their childhood, interferes with their ability to attend regular school, and that is mentally, physically, socially or morally dangerous and harmful. The term “child” refers to any person under the age of 15, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. Acer believes that the wellbeing and education of our future generations are of utmost importance. Therefore, Acer prohibits child labor in its supply chain and conducts routine audits to verify conformance to these requirements. If child labor is discovered in the supply chain, Acer will remedy the impacts of this atrocious condition by implementing the following measures.
 
Child Labor Remediation Measures:
‧ If child labor is found at an Acer supplier factory, the factory must immediately remove the child from the workplace.
‧ The factory where the child labor was found must send the child to have special labor health check to make sure his/her health is not affected by the work. If affected, all the fees, including medical treatment cost and living cost, must be covered by the factory.
‧ The factory where the child labor was found must contact the family and send the child home. All expenses related to transporting the child home must be covered by the factory.
‧ The factory where the child labor is found shall continue to pay the wages until the child is of legal working age.
‧ The factory where the child labor is found shall make sure that the child completes compulsory schooling. The factory shall provide Acer with the name and address of the school in which the child is enrolled.
‧ The Corporate Sustainability Officer of Acer should notify the related head of the Acer BU and BG to discuss this core non-conformance situation.
‧ Acer shall identify the risk of repeated child labor conditions through an unannounced audit of the affected factory within 6 months.

Forced Labor

Forced labor refers to situations in which persons are coerced to work through the use of violence or intimidation. Forced labor takes on many forms that included debt bondage, human trafficking, and other forms of modern slavery. Acer believes that all work shall be voluntary and workers shall be free to leave work at any time or terminate their employment. Through its Code of Conduct, Acer prohibits any form of forced labor in its supply chain. Acer requires its suppliers to adhere to its Code of Conduct and verifies the conformance with routine audits. If forced labor is identified in the supply chain, Acer will take action to remedy the situation through the implementation of the following measures.
 
Forced Labor Remediation Measures:
‧ Acer shall review and investigate the findings and relevant regulation to find the gaps and problems.
‧ Acer shall communicate with supplier factory management and collect supplemental information.
‧ If confirmed that human trafficking, slavery and/or any form of forced labor exists at an Acer supplier factory, Acer will work with experts and authorities to ensure that the worker is offered a safe place to live and provided with financial assistance, the cost of which shall be covered by the factory for a period of time deemed to be sufficient by the authorities 
‧ The Corporate Sustainability Officer of Acer will notify the related head of the Acer BU and BG to discuss this core non-conformance situation.
‧ Acer shall identify the risk of repeated forced labor conditions through an unannounced audit of the affected factory within 6 month.

Student Workers and Interns

Student workers and interns comprise a high-risk group in terms of human rights in the electronics supply chain. Acer prohibits any form of forced labor in our supply chain, including forced labor involving students or interns. Taking our cue from the RBA' Guidelines for Good Management of Interns, we have established our own five-stage “Management Steps for Student Workers and Interns” to be followed with students and interns in our supply chain. In addition to this, we require that student workers not exceed 20% of our total direct employees.

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Acer Supply Chain Working Hours Policy

Acer requests its suppliers to adhere to the RBA Code of Conduct and Acer Supply Chain Working Hours Policy, which sets strict requirements for labor conditions and working hours. Acer has the following expectations of its suppliers in relation to the working hours of their employees.

 

To ensure conformance with these supplier expectations Acer will:

 

It is Acer' goal through this policy to improve supplier communication and collaborative planning to eliminate excessive working hours, improve worker health and morale.

Living Wage

While addressing issues such as overtime and wages/benefits for staff, we believe that the incorporation of a living wage is an important consideration in improving the living conditions of those who work for us. As such, we continue to explore the issues and opportunities around introducing the concept of a living wage to the electronics industry.

 
 

California Transparency in Supply Chain Act

In 2010 the California Transparency in Supply Chains Act of 2010 (SB 657) was passed and has been into effected on January 1, 2012. This law requires large retailers and manufacturers who do business in the state of California and have annual gross worldwide sales of over $100 million U.S. dollars to be transparent about the efforts they have undergone to eradicate slavery and human trafficking in their supply chain.
 
As Acer is a member of the RBA, we require our suppliers to abide by the RBA code of conduct, especially with regards to their workforces. The RBA code of conduct specifically forbids malpractices such as using forced labor, underpaid labor, involuntary prison labor, or binding workers to unreasonable contracts. Acer also conducts risk management, on-site factory inspections, training courses, and other management procedures to ensure that our suppliers’ manufacturing operations accord with Acer' social and environmental responsibilities. We have adopted Supply Chain Labor Rights Management Process, to prevent the possibility of any of our suppliers engaging in forced labor or human trafficking. For complete information concerning Acer' supply chain responsibility program and specific audit findings, please see Acer Corporate Responsibility Reports.

 
 

UK Slavery and Human Trafficking Statement

We therefore take a zero-tolerance approach to slavery and human trafficking both in our business and in the businesses of our suppliers. We are committed to acting ethically in all our business dealings and relationships wherever we operate and implementing and enforcing effective systems to counter slavery and human trafficking. It is our policy to conduct all our business ethically and in accordance with the UK Government' Modern Slavery Strategy, as amended from time to time, and as outlined in the UK Home Office Guidance "Transparency in Supply Chains: a Practical Guide" published on 29 October 2015.

   

Our Policies on Slavery and Human Trafficking

We are committed to ensuring that there is no modern slavery or human trafficking in our supply chains or in any part of our business.

‧ Our Acer Group Standards of Business Conduct (SBC) reflects our commitment to acting ethically and with integrity in all our business relationships and to implementing and enforcing effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in our supply chains.

‧ As a member of the Responsible Business Alliance (RBA) - a nonprofit coalition of electronics companies committed to supporting the rights and well-being of workers and communities engaged in the global electronics supply chain -- we demonstrate our commitment to environmental and social responsibility. RBA members commit publicly to the RBA code of conduct (the “Code of Conduct”) and are expected to actively pursue conformance to the Code of Conduct and its standards as a total supply chain initiative.

‧ We require all manufacturing suppliers to abide by all applicable laws and regulations and by the RBA Code of Conduct, by treating employees with respect and dignity. We haves taken multiple actions to ensure social responsibility and labor rights in our supply chain.

‧ Acer believes that all work shall be voluntary and workers shall be free to leave work at any time or terminate their employment. Through the Code of Conduct, Acer prohibits any form of forced labor in its supply chain. Acer requires its suppliers to adhere to its Code of Conduct and verifies the conformance with routine audits.

Acer has released the Slavery and Human Trafficking Statement of 2018, which includes the policies on slavery and human trafficking, organization' structure, our supply chains, due diligence processes for slavery and human trafficking and effectiveness.

 
 

Responsible Sourcing of Minerals

Responsible minerals sourcing continues to be a major focus for Acer. We believe that it is our responsibility to respect the human rights of others and to address adverse human rights impacts that exist where we do business and within in our area of influence. As a program that began with a focus a focus on 3TG (tantalum, tin, tungsten and gold) in the Democratic Republic of the Congo (DRC), Acer' Responsible Minerals Sourcing program has expanded to a program capable of addressing any minerals identified by Acer that involve social and environmental risks.
 
In 2017 and 2018, Acer' responsible minerals sourcing program completed the transformation to this renewed focus. Acer has identified and prioritized minerals for inclusion in our responsible sourcing policy and they currently include Conflict Minerals or 3TG from the DRC and its adjoining countries, cobalt from the DRC and tin from Indonesia. Acer will continue to reassess its priority minerals as well as be involved in the refining of the procedures to identify Conflict-Affected and High-Risk Areas (CAHRAs).

Our Actions

 

Acer continues to use the Standards and Risk Readiness Assessment (RRA) tools provided by the Responsible Business Alliance (RBA). These tools compare the performance of smelters across many different standards, initiatives, and certifications, improving our ability to assess and manage risks in the mineral supply chain. We have currently established links with 95 smelters and received 86 RRA assessment results.

Acer continues to follow the OECD Due Diligence Guidance as the basis for its conflict minerals management program and seeks to implement program elements that strengthen Acer' conformance to those guidelines. We also continue to conduct smelter outreach and communicate smelter details and the results of our efforts to the Responsible Minerals Initiative (RMI) Smelter ID team, as we believe the smelter/refiner identification and disposition are critical components of our due diligence procedure and of maintaining RMAP smelter data.

We continue to hold meetings with suppliers to ascertain progress on the issue of conflict minerals, to explain Acer' commitments and supplier requirements, and to ensure they have a greater awareness and more thorough understanding of this issue. We will also continue to publish the results of our surveys, and to work with government, industry, and civil-sector groups to resolve supply chain challenges and to ensure the use of legal, conflict-free minerals. Additionally, we will continue to seek opportunities for more advanced due diligence surveys, verifying optimal methods and practices and working to ameliorate the conflict minerals situation in the Democratic Republic of the Congo and neighboring countries.
Download Responsible Mineral Report

Supplier Requirement

Acer communicates the following expectations to its suppliers with respect to the responsible sourcing of minerals:

‧ Acer suppliers must conduct their operations in a socially and environmentally responsible way.

‧ Acer suppliers shall exercise due diligence based on national or international recognized standards or guidance on the source and chain of custody of these priority minerals (such as the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas) and make their due diligence measures available to Acer upon request. These measures shall include the completion of the RMI Due Diligence Template tool and the support of the RMI Responsible Minerals Assurance Process (RMAP).

‧ Beginning with the 2017 calendar year, Acer expects all of its suppliers to only accept tantalum, tin, tungsten and gold from smelters or refiners (SORs) that have been audited and are deemed conformant by the RMAP.

To confirm that suppliers implement our requirements, we work with third-party auditing companies. On-site audits check that minerals are sourced with due diligence and according to our policies. We make all efforts to verify that the materials used to make Acer products are not from conflict minerals.

Public-Private Alliance for Responsible Minerals Trade

Acer continued its involvement in the PPA by completing the first year of the new 5 year, phase 2 partnership. The PPA is the multi-sector and multi-stakeholder advocacy group that aims to publicize the issue of conflict minerals in the Democratic Republic of the Congo and the African Great Lakes Region and propose supply chain solutions. We learn about government partners’ activities and priorities over the near and long-term related to responsible minerals trade in the Great Lakes Region, and identify opportunities for PPA collaboration.

Cobalt & Indonesia Tin

As part of its responsible minerals program, cobalt is a key focus for Acer due to the associated child labor issues in the DRC. Acer continues to support the cobalt sub-working group as part of its RMI membership. In 2018, the group made progress developing outreach materials and tools to aid in supply chain transparency and developing validation systems to support company due diligence. Acer participated in an expanded pilot of the cobalt reporting template and for the second time in two years, engaged its lithium-ion battery suppliers to gather information on cobalt policies, due diligence procedures and to identify the cobalt refiners in the battery supply chain. In addition, the RMI developed the cobalt refiner audit protocol and launched a pilot of the audit program. Acer supported the program by engaging several key refiners to request their participation in the pilot. It is expected that the Cobalt Reporting Template (CRT) will be finalized and the assessment program will be fully launched in 2019. Acer will continue its efforts to survey its battery supply chain each year and will seek to identify cobalt refiners and drive their participation in the assessment program. In 2018, Acer continued its membership in RMI' Tin Working Group (TWG). The TWG is focused on the environmental impacts and safety concerns of mining tin in Indonesia.

Acer is aware of issues regarding labor conditions and environmental degradation associated with tin mining on the Indonesian islands of Bangka and Belitung. Therefore, Acer is committed to undertaking the actions to remedy this. Acer continues to believe that working together as an industry and in partnership with all stakeholders is the most efficient way to enable success at driving meaningful improvement in the social and environmental conditions associated with raw materials extraction.

Action on Management of Tin Mining in Indonesia

 
 

Environment

Acer works with its suppliers throughout the product lifecycle, from design, manufacture, assembly, use and end-of-life treatment to reduce the environmental impact of its products. With Acer products, consumers are able to reduce their own environmental impact by reducing their energy consumption, and waste generated through a recycling plan, which ensures products are properly handled for reuse or recycling.

Supply Chain Chemical Substances Management

We have adopted the RBA Code of Conduct and require our suppliers to employ effective chemical substances management systems and comply with local regulations to effectively classify, store, use, and dispose of chemicals, as well as to provide workers with appropriate protective equipment and training. In our 2017 Supplier CSR Communication Meeting we announced our list of Banned or Restricted Chemical Substances, with the list formally coming into effect in 2018. This list includes toluene, benzene, beryllium dust, chlorinated organic solvents, n-hexane, N-Methyl-2-pyrrolidone (NMP), and substances harmful to the ozone layer.

These chemical substances, which can impact the outside environment or the health of workers, are required to be banned from or limited in their usage in processing throughout the supply chain from 2019. We will continue to pay attention to specifications set out by relevant industries, evaluate expanding the scope of this inventory, reduce the risks faced by workers and the environment, and strengthen both communication and checks in on-site audits.
 
Supply Chain GHG Management
Our Products and the Environment