Message from the Chairman and CEO | Philosophy | ASUS ESG website, ASUS ESG goal

Message from the Chairman and CEO

Message from the Chairman and CEO

Message from Chairman
Message from the CEO

Message from Chairman

In recent years, the external environment has had a significant impact on the global economy, causing numerous challenges to the internal and external operations of enterprises. ASUS has been reinventing itself in response to this impact, and the real selfreflection and trials in the face of industry adversity are opportunities for the Company to truly embrace the reality and achieve evolution.

In response to the diversification of global risk trends, ASUS has expanded its Risk Management Platform into the Business Continuity Management Committee, chaired by an independent director, with more than half of the members being independent directors, in order to balance the views of internal and external stakeholders and enhance risk inclusion. We take a structured and holistic approach to risk management, build the foundation of corporate resilience, identify possible future risks and establish good prevention mechanisms in order to respond to them in advance; these measures help to control the general risks anddetermine the strat egic directions of the Company.

By building a solid cultural foundation,ASUS continues to drive sustainability transformation and evolution, and incorporates ESG as a key part of its branding and marketing strategies. Under the leadership of the spirit of "One ASUS", the Company has developed a sustainable brand communication language - "Sustaining an incredible future" - and has created a consistent and sustainable communication language in the four areas of "Circular Economy", "Responsible Manufacturing", "Climate Action", and "Value Creation", which we have been cultivating for many years. These visions are implemented to convey the Company's sustainable impact and its vital commitment to the environment and the society.

We are seeing an international trend in non-financial reporting frameworks, as the diverse existing mainstream frameworks are reorganizing and converging and gradually moving toward "niche communication". The International Financial Reporting Standards (IFRS) Foundation established the International Sustainability Standards Board (ISSB) in 2021 to facilitate the development of an integrated and unified international sustainability disclosure framework. In addition, enterprises publish independent reports on various material topics on sustainability to provide stakeholders, including investors, with valuable information on sustainability. The 2022 ASUS Sustainability Report, referring to the Sustainability Disclosure Standards (IFRS S1/S2) issued by the ISSB, reveals its core elements: governance, strategies, risk management, and metrics and targets, and sets out to align with international standards in advance, disclosing the risks and opportunities of potential operational impacts and the management actions of the Company in accordance with the four pillars of corporate sustainability. This year, we continue to communicate with different segments of the general public and continue to publish independent reports, including the report compiled in line with the Task Force on Climate-Related Financial Disclosures (TCFD) and the Environmental Profit & Loss (EP&L) report, systematically disclosinginformation that demonstrates the operational resilience of ASUS and the management outcomes of targeted actions.

ASUS has been awarded numerous international awards for our sustainable management practices and have continued to reinvent itself in the pursuit of our brand spirit of "In Search of Incredible". In 2022, under the commission of Taiwan's Ministry of Economic Affairs for the evaluation of the values of Taiwanese brands, the Interbrand named ASUS as the Best Taiwan Global Brand for the ninth time. At the same time, ASUS has ranked in World's Most Admired Top 50 All-Stars of the Fortune magazine for the eighth time, standing in the leading positions in areas such as "Innovation", "Social Responsibility", and "Product and Service Quality". ASUS was also named one of the Clean 200 companies by Corporate Knights in 2023. The China Household Electric Appliance Research Institute (CHEARI) and Peking University jointly released the "Annual Report on the Implementation of Extended Producer Responsibility for Electronic and Electrical Products in China", and ASUS was awarded the first place for two consecutive years. However, as we anticipate a more unpredictable global economy in 2023, full of uncertainties and challenges, the ASUS team responds to them by building a strong corporate culture and organization and bringing together and leveraging the wisdom of all people through practical actions to address the industry's adversities and turbulence. Meanwhile, the Company is considering growth opportunities and risks and balancing long-term values and short-term performance in order to prosper in more sustainable and inclusive directions.

Chairman Jonney Shih

Message from the CEO

The past two and a half years have been a very difficult period for the world. In 2022, the overall economic and industrial environment was subject to drastic changes, including geopolitical conflicts, aggressive adjustments in monetary policy driven by high inflation, and significant reversals in market demand. All of this posed multiple challenges to both the internal and external operations of ASUS, as well as serving as a litmus test of our resilience and ongoing corporate transformation.

The corporate transformation journey we embarked on in 2018 pushes us to continuously transform and evolve not only our products and services, but also our corporate culture. To achieve this, we bravely embrace reality and adhere to the principles of radical truth and transparency. At the same time, we are actively cultivating an idea meritocracy and leveraging our collective wisdom to pursue excellence in innovation among our teams. These behavioral patterns have been integrated into our daily operations – making ASUS a stronger and more resilient organization.

It is our belief that technology has the transformative power to make the world a better place. That's why we are committed to strategic sustainability with a focus on fundamentals and results. We have four main focus-areas: climate action, circular economy, responsible manufacturing, and value creation. And we have initiated a threephase roadmap for our net zero vision: improving energy efficiency, expanding the use of renewable energy, and investing in innovative carbon reduction technologies.

In 2022, ASUS established a corporate accelerator program in cooperation with National Taiwan University's Taidah Entrepreneurship Center (TEC), which is committed to building new innovation ecosystems for startups. The accelerator targets three major areas: electric vehicle applications, green technology, and gamification experience. The goal is to work with startup teams to develop new technologies and business models – leveraging sustainable, low-carbon, smart technology to drive the green transformation of the industry.

At the same time, ASUS has remained committed to the research and development of low-carbon products. Our first carbon footprint certification for commercial laptops was completed in 2022. And, this year, as part of our ambitious carbon reduction program, we have launched carbon neutral certified laptops for commercial and home use.

Starting from the product design stage, ASUS continuously strives to reduce carbon emissions by introducing low-carbon manufacturing processes, improving energy efficiency, and selecting environmentally friendly materials. We have achieved full carbon neutrality by using high-quality nature-based carbon credits, setting a new milestone in ASUS's sustainability journey. Additionally, the launch this year of the ASUS Carbon Partner Service – a one-stop, flexible and highly credible carbon neutral service – will further enlarge the impact of our sustainability actions.

Leveraging our technology and innovation, we use scientific, data-driven evaluation to constantly evolve and strive for excellence, helping to lead the world to a more incredible future. Our efforts have been repeatedly validated. For example, ASUS has been included in many international ESG rating indexes and was recently recognized by the Financial Times and Statista as one of the Climate Leaders Asia-Pacific (2022-2023) for the second consecutive year. We also received 2022 Asia Sustainability Reporting Awards (ASRA) in the categories of Asia's Best Materiality Reporting - Gold Award, Asia's Best Stakeholder Reporting - Bronze Award, and Asia's Best Supply Chain Reporting - Bronze Award.

As ASUS enters its 35th year as a company, we will continue to face the challenges that come our way with a positive, proactive, and open attitude. And we will further leverage our technological strengths and innovative thinking to grow and develop with our partners in pursuit of mutual prosperity, and to further advance our goal of Sustaining an Incredible Future.

Co-CEOs S.Y. Hsu

Co-CEOs Samson Hu