ASUS has published its "2024 Natural Impact Assessment Report," outlining a strategic roadmap for natural capital and biodiversity based on eight key actions encompassing both value chain management and external initiatives. The process begins with a value chain environmental footprint data assessment, followed by an environmental profit and loss (EP&L) analysis to identify environmental impact hotspots. Within value chain management is then implemented to mitigate these impacts. Through circular economy initiatives and supply chain management, particularly concerning freshwater resource management within the value chain, ASUS further analyzes whether key supplier locations are situated in internationally or nationally recognized biodiversity hotspots. Identified suppliers located near critical biodiversity areas will be subject to grading management and enhanced auditing to reduce the impact of water pollution leading to effective water resource depletion. Externally, ASUS is responding to international nature-positive initiatives by engaging in species restoration and habitat creation projects. Looking ahead, ASUS will monitor international trends, participate in natural capital credit markets, and explore innovative technologies to discover new technological solutions for nature.

Within the Value Chain
Building upon previous Environmental Profit and Loss (EP&L) assessments, ASUS has refined its monetization factors this year, based on methodological advancements and evolving environmental and social conditions. In addition to Disability-Adjusted Life Years (DALY), an ecosystem impact pathway has been incorporated to reflect environmental impacts more comprehensively. The quantitative results indicate that greenhouse gas emissions constitute the largest environmental impact within the value chain, accounting for 53.07%, followed by freshwater resources (including water pollution and water resource use), which account for 45.32%. Regarding freshwater resources¹ , ASUS has identified nature-related risks and opportunities for its own operations and key suppliers, guided by the TNFD (Taskforce on Nature-related Financial Disclosures) framework and the guidelines published by the Network for Greening the Financial System (NGFS).

Based on risk and opportunity assessments, ASUS has identified key suppliers with relatively high freshwater resource risks. Through the TNFD LEAP (Locate, Evaluate, Assess, Prepare) approach, utilizing international biodiversity databases and the China National Biodiversity Database (given the prevalence of suppliers in China), ASUS has determined that some key suppliers are located in biodiversity-sensitive areas. For suppliers located in sensitive areas, ASUS conducts annual audits, requiring not only the verification of testing reports but also the establishment of biodiversity control mechanisms. As of 2024, key suppliers collectively treated 5,592 kilotons of wastewater, 100% of motherboard manufacturers provided qualified wastewater testing reports, and 61% of key suppliers have established water conservation targets.

Beyond the Value Chain
In addition to mitigating environmental impacts within the value chain, ASUS is actively engaged in nature-positive initiatives outside the value chain. The "Dasyuehshan Middle-Altitude Pangolin Habitat Enhancement and Conservation Project", a collaboration with the Kuan Shu Educational Foundation, and the research team of Professor Ching-Min Sun, conducted interviews with local farmers and identified pangolin burrow locations in 2024 to understand the interactions between the community and the species. This year's results were among the first cases certified by the Forestry and Nature Conservation Agency, receiving outcome certification. ASUS also organized various environmental education seminars and experiential activities for employees to cultivate environmental awareness. From risk management to value creation, ASUS is committed to achieving a harmonious and progressive coexistence between business and nature.

Visit our Natural Impact Assessment Report online for more detail.

1. Given the fundamental differences between climate and biodiversity assessment methodologies, ASUS has developed tailored plans and responses for each. For greenhouse gases, which represent the most significant impact, comprehensive inventories, management strategies, and actions are disclosed in the dedicated report—Climate-related Financial Disclosure Report. For freshwater resources (wastewater pollution and water usage) and solid waste, management strategies and actions are disclosed in the Natural Impact Assessment Report.