Sustainability Value Creation | ACER ESG
Sustainability Value Creation
Sustainability means long-term development at economic, social, and environmental levels. In addition to creating revenue, the company's operations will also have a certain degree of external impact, including in environmental and social aspects. Quantifying or monetizing the environmental and social external impacts of a company's operations can help them better understand their impact, respond to problems, and achieve the goals of sustainable development.
To strengthen corporate social responsibility (CSR) governance and achieve Acer's vision for sustainability, we have been evaluating the external economic, environmental, and social impacts of operations and translating them into specific numerical and monetary values since 2018. This not only helps us review the impact of our operations, but also helps us better manage and reduce the environmental and social impacts of our operations, providing a better reference for future sustainability and business decisions and increasing transparency of our external communications..
The quantification process is divided into four steps, the first of which is identifying the impact boundary of Acer's operating activities, the scope of the quantification, and external issues with significant impacts from the material topics identified this year. Next, taking into account the positive and negative impact of various activities in Acer's value chain and operations on stakeholders, the external issues that have significant impact are expanded upon each part of the value chain. Then, based on the materiality of each external issue (materiality matrix, industry specific issues, Acer's own situation), representative topics are selected for external quantification. After the initial calculation results are discussed internally and coefficients corrected, the value of Acer's external impact is obtained.
The Quantification Process
Acer is one of the world's leading ICT companies and brands, providing consumer and commercial PCs, digital displays, and electronic service solutions. First tier suppliers in the value chain are mainly ODM assembly plants, material and component manufacturers, while second tier suppliers and onward are upstream raw materials and parts manufacturing. In terms of downstream customers, products can be sold to commercial customers, general consumers, government departments, or schools through distributors or system integrators.
According to our 2022 materiality analysis, Acer has listed activities at various parts of the value chain. To clarify the impact of activities in the value chain on stakeholders, we have mapped out the impact pathway of each activity's inputs and outputs. After considering the inputs and outputs of value chain activities, we list the potential environmental or social impact of those activities and the relevant stakeholders. Finally, we select 12 externally influential indicators to quantify based on the materiality of the topic and Acer’s own situation, data quality, and availability.
We uses the externality assessment tool to monetize the environmental, social, and economic externalities of ourselves so as to examine the value created by the us. Based on the impact pathway, the materiality of each topic, and each topic's materiality, data quality, and availability, the following 12 impact indicators were selected as the basis for the subsequent valuation of Acer's value. The indicators, explanations, quantitative methods, and data sources are listed below:
Unit: NT$ thousands
The calculations show that in 2022, Acer created a net true value of more than NT$121.8 billion, of which 5.7% of this came directly from operational economic contributions, and approximately 84.4% of social benefits were derived from the value chain, including positive impacts of employee salaries, public spending, procurement activities, and digital inclusion, along with the negative impacts of industrial incidents. The environmental externalities resulting from the overall value chain accounted for about 10%. These externalities include negative impacts from greenhouse gas emissions, water consumption, and waste and e-waste output, as well as the positive impacts from renewable energy usage and the use of PCRs.
In the future, Acer will continue to assess the environmental and social externalities caused by our operations through methods for quantifying sustainable value. This will help us gain a comprehensive understanding of our impact and enable us to increase positive externalities and reduce negative ones, thereby creating a more comprehensive sustainable value.