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.
 

This is a picture to illustrate that how ASUS use the 4 procedures: Material Selection, Product Design, Consumer Use, and Circular Use, to support the 5 business models: Circular Supply Chain, Product Life Extension, Devices as a Service (DaaS), Sharing Platform, and Recovery and Recycling, to incorporate the circular economy strategy into our basic economic framework.
Recycled Materials Takeback Service Refurbished Computer DaaS Sharing Platform (Singapore)



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:

8 sustainable design principles: Environmentally Friendly Materials, Subtrative Design, Durability, Reusability, Modularity, Disassembly, Versatility, and Recyclability.

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.

ASUS Carbon Footprint Report

Raw Material

Raw Material inventory and statistics

  • Transport path
  • Amount of environmentally friendly materials Used
  • Total raw material usage
  • Carbon emission data of each material

Utilization of environmentally friendly materials, including post-consumer recycled plastics, recycled paper, and forest sustainable certified paper materials.

Manufacture

Manufacture process Data inventory

  • Water consumption
  • Energy used
  • Waste generation
  • Amount of sewage

Supply chain management, involving the promotion of renewable energy usage and the adoption of low-carbon processes.

Transportation

Transportation Data inventory

  • Mode of transport
  • Transport path/distance
  • Distribution load

Packaging material lightweighting design to enhance transportation efficiency.

Use

Electricity Data inventory

  • Electricity coefficient of the Country of Sale
  • Electricity consumption of products

Product energy-saving design, meeting the stringent international energy consumption standard ENERGY STAR®, further improving energy-saving design of products.

Disposal

Disposal Data inventory

  • WEEE product waste recyclable ratio after dismantling, computer conversion ratio, and landfill ratio after incineration
  • The distance from the sales recycling service locations to the cooperative recycling processor, as well as the method of transportation and dismantling.

Establishment of takeback services, collaborating with recycling companies meeting internationally recognized electronic recycling standards to avoid wasting resources

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

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.