Circular Economy Model

Circular Economy Concept

The circular economy model helps reduce the excessive waste of resources and environmental pollution and supports an environmentally friendly business model. To attain this goal, we incorporated the circular economy concept into the design of products and services. We use the four following procedures to support the five business models proposed by the international consulting firm Accenture: Circular Supply Chain, Product Life Extension, Devices as a Service (DaaS), Sharing Platform, and Recovery and Recycling. We incorporated the circular economy strategy into our basic economic framework.
 

ASUS believes that the circular economy is the true driving force for achieving sustainable product development. Therefore, through a design thinking approach, we create products that closely align with user needs by considering consumer demand, technological feasibility, and business viability. Additionally, we incorporate ASUS' eight sustainable design principles wherever possible, depending on the product characteristics, to enhance product circularity:

Product Life Cycle Assessment

While creating product value, ASUS also pay attention to the impact of product life cycle on the environment. Through the different stages of raw material, such as extraction, manufacturing, transportation, use, disposal, etc., in accordance with the ISO 14040 and 14044 life cycle assessment (LCA) standards, ASUS has quantified the possible environmental impact, and at the same time identified the emission hotspots in the product life cycle, and continued to target and ensure the product carbon footprints have been tracked and decremented.

Application of Circular Economy: Product Carbon Footprint, Carbon Neutrality, and ASUS Carbon Partner Service

ASUS conducts Product Life Cycle Assessment (LCA) for all product designs in accordance with ISO 14040:2016 standards. The product life cycle encompasses the entire process from raw material extraction, manufacturing, use, to final disposal, every element of this cycle influences the product’s environmental impact index. To effectively reduce the impact index, ASUS utilizes ISO 14067:2018 Product Carbon Footprint verification to identify the carbon emission hotspots in the product life cycle, further improving product design, while formulating supply chain carbon reduction plans and objectives.

In 2022, ASUS achieved a significant milestone by having the world's first commercial laptop verified with ISO 14067:2018 Product Carbon Footprint by the third party. In 2023, ASUS accomplished product carbon neutrality and obtained third-party verification under PAS2060:2014. To achieve the goal of low-carbon products, ASUS integrates environmentally friendly materials, implements low-carbon processes through supply chain management planning, and enhances product energy efficiency during the R&D design phase. In 2023, laptops utilizing over 5% post-consumer recycled (PCR) plastic witnessed approximately an 18% reduction in overall carbon emissions compared to laptops without any post-consumer recycled (PCR) plastic. Additionally, models exhibiting energy efficiency exceeding ENERGY STAR® standards by over 40% recorded an average reduction of 18% in carbon footprint compared to ENERGY STAR® compliant products. ASUS consistently integrates carbon reduction designs into product development, striving for low-carbon product objectives.

In 2023, ASUS also launched ASUS Carbon Partner Services, where customers have the option to purchase high-quality carbon credits to offset the remaining carbon emissions of their products, thereby assisting customers in achieving ESG performance and carbon reduction goals.

For detailed information on ASUS Carbon Partner Services, please refer to Products and Solutions.

Innovative Project on Metal Analysis of Recycled Laptop Motherboards

Asus is actively engaged in advancing the principles of the circular economy. In pursuit of resource reutilization and reduced-carbon operations within the recycling sector, Asus has partnered with a third-party entity possessing advanced clean metal recovery technologies. This collaboration led to the initiation of the 'Innovative Project for Metal Analysis of Recycled Laptop Motherboards' in 2021. Findings from this project indicate that each metric ton of laptop motherboards contains recoverable precious metals, specifically gold, silver, and palladium, with an estimated value of approximately NT$90,000. This effectively transforms electronic waste into a valuable resource stream. Furthermore, the project involves a comprehensive analysis of metal usage across various product components. Future efforts will focus on the centralized processing of components containing precious metals. This initiative also serves to validate supply chain management practices in responsible mineral sourcing, with a particular emphasis on auditing key manufacturers utilizing responsible metals.

In addition to evaluating the benefits for recycling metals from motherboards in the metal recycling process, we adopted the low-carbon recycling technology and a green agent for zero-cyanide processing. We use mechanical disassembly, sorting, and the wet tin stripping process to quickly and completely remove metals. The efficiency is 15% higher than that of traditional recycling technologies and the wastewater derived therefrom is easier to process compared to traditional processes that use cyanide or aqua regia. Also, It can reduce the carbon emissions in the treatment process. ASUS has adopted the closed loop concept for recycling and reuse and transitions toward the sustainability goal of cradle to cradle to minimize energy and resource consumption and make zero waste possible. We shall increase green competitive advantages and opportunities to respond to future carbon reduction and circular economy development.