CONTENTS ABOUT THIS REPORT 3 03 CORPORATE GOVERNANCE 28 07 SOCIAL 86 MESSAGE FROM THE CHAIRMAN 4 Corporate Governance Structure 31 Human Rights Management 89 AND CEO Ethics/Standards of Conduct & Legal 35 Attracting and Developing Talent 92 About This Report Compliance Health and Safety in the Workplace 101 Risk Management 36 Message From The Chairman and CEO IMPORTANT ACHIEVEMENTS 5 Social Philanthropy and Digital Inclusion 105 AND RECOGNITION IN 2019 Important Achievements and Recognition in 2019 CSR PERFORMANCE HIGHLIGHTS 7 04 RESPONSIBLE SUPPLY CHAINS 40 CORPORATE SOCIAL CSR Performance Highlights RESPONSIBILITY Supply Chain Management Mechanisms 43 08 MANAGEMENT SUMMARY 113 01 Business Operation On-site Audits 45 Economic 113 02 Sustainable Governance 01 BUSINESS OPERATION 8 Environmental Management 49 Social 114 03 Corporate Governance Social Management 50 About the Company 9 Environmental 115 04 Responsible Supply Chains Brand Values 11 Status of Operations 13 05 Innovation and Service 05 INNOVATION AND SERVICE 54 09 APPENDIX 116 06 Environment Innovative Products and Services 57 Independent Limited Assurance Report 116 02 SUSTAINABLE GOVERNANCE 14 07 Social Customer Service 62 Greenhouse Gas Inventory 117 08 Corporate Social Responsibility Corporate Social Responsibility Policy, Strategy, 16 Information Security and Privacy Protection 65 GRI Index Comparison Table 119 and Governance Management Summary SASB Standards 127 United Nations Sustainable Development Goals 19 09 Appendix Materiality Analysis and Stakeholder Engagement 20 06 ENVIRONMENT 68 Circular Economies and Product Life Cycle 71 Energy and Responding to Climate Change 79 Operations and the Environment 82 03 ABOUT THIS REPORT ABOUT THIS REPORT About This Report Acer has issued Corporate Social Responsibility Reports annually since 2008, for 12 years running. REPORT QUALITY MANAGEMENT We issue the report in both Chinese and English, and for the convenience of readers, we also Message From The Chairman and CEO publish Chinese, English, and German editions. This report discloses information on performance Internal Verification in corporate governance, environmental issues, and social issues, as well as future plans, enabling The integrity and accuracy of the data are verified by the management of Acer’s internal Important Achievements and interested parties to better understand Acer’s efforts and achievements in sustainable departments and the members of the Company’s CSR Committee, with ESG performance and Recognition in 2019 development. Previous years’ Corporate Responsibility Reports and the latest information on strategic goals reviewed by the Chief Sustainability Officer. sustainable development are available at the Acer Group’s CSR website. External Assurance CSR Performance Highlights Sustainable Data and Information: This report commissioned the accounting firm KPMG REPORT BOUNDARIES AND SCOPE Certified Public Accountants in accordance with the limited assurance standards of ISAE 3000. 01 Business Operation During the assurance process, management-level staff, including the CSO, take part in procedures This report is based on the principles of consolidated financial statements with regard to and interviews. 02 Sustainable Governance organizational boundaries. In scope, this report includes the Acer Group’s subsidiaries, the Acer Foundation and the Gateway Foundation, but does not include reinvestment matters, and some Financial Data: All financial data in this report has been verified by KPMG Certified Public 03 Corporate Governance performance information is not yet fully incorporated; where there are issues of data adjustment Accountants. or estimation, they will be stated in the report text. For more detailed finance and organizational Data Relating to Greenhouse Gases: GHG-related data has undergone verification by SGS and is 04 Responsible Supply Chains information, please refer to the Acer Group’s Investor Relations page . in accordance with ISO 14064. 05 Innovation and Service REPORT ISSUING DATES AND FREQUENCY Responses and Feedback If you have any questions or suggestions regarding the Acer 2019 Corporate Social 06 Environment This report, released in June 2020, discloses the company’s performance in key issues of Responsibility Report or sustainability issues, you are welcome to contact us. Our contact sustainable development during 2019 (January 1, 2019–December 31, 2019); however, for the 07 Social details are: sake of information completeness and comparability, a portion of the performance data disclosed dates back to before 2018 or forward into 2020. Acer issues Corporate Responsibility Reports each 08 Corporate Social Responsibility Acer Corporate Sustainability Office year, with the previous report issued in June 2019. Management Summary Address: 10F., No. 88, Xintaiwu Rd. Sec. 1, Xizhi Dist., New Taipei City Telephone: +886-2-8691-3137 09 Appendix REPORT COMPILATION PRINCIPLES CSR Email: [email protected] The content of our reports follows the Global Reporting Initiative’s Sustainability Reporting Report Download Standards Core Option. The GRI indicators are appended to this report. Cover Story Faced with global social and environmental issues, Acer must assume greater responsibility and serve as a positive influence. We encourage our staff to work together to create change. In 2019, Acer staff around the world participated in our in-house Project Humanity project . Through a series of activities, we aimed to have everyone gradually cultivate their awareness of environmental issues and new habits starting with their everyday lives. Our hope is that through such efforts, we can realize the vision represented by this year’s cover design and visual theme: keeping the Earth smiling and creating a positive impact that we can all be proud of. 04 MESSAGE FROM THE CHAIRMAN & CEO FROM MESSAGE MESSAGE FROM THE CHAIRMAN AND CEO About This Report A company’s pursuit of making the world a better Beyond our efforts that include bridging the digital divide and supporting ecological farming, I am place must start with its employees’ conviction and glad to see our employees actively propose new and creative ideas for the environment and Message From The Chairman and CEO willingness to participate. At Acer, we have been humanity, reflecting Acer’s “people-centric” mindset. In 2020, we will be initiating more activities raising awareness of climate change and educating for employees to conserve the Earth’s natural resources, and that apply directly to our business Important Achievements and employees on how they can each contribute to make operations. Only by integrating these efforts into our business models in the long term, will we Recognition in 2019 a significant impact to a greener environment. Our become a sustainable company of the future. ongoing research and development also includes new In light of the coronavirus pandemic, we are mindful of how it has changed many aspects of CSR Performance Highlights technologies for people’s wellbeing. This involves everyday life and how people, businesses, and establishments worldwide remain concerned. collaborating with biotech and medical institutions During this time, we want to ensure that our customers have access to our services and the 01 Business Operation to focus on applying artificial intelligence in products they need to carry on with their work, study, or keep in touch with their loved ones. enhancing the accuracy and speed of disease Business continuity and the health of our customers, employees and partners are our primary 02 Sustainable Governance detection. concerns. Our worldwide operations have been working closely with public health authorities, 03 Corporate Governance In 2019 Acer launched Project Humanity, an initiative taking actions to ensure the safety and wellness of our employees. Our executive team also involving our worldwide employees to make the world continues to monitor the COVID-19 developments, indeed the velocity of our decisions and 04 Responsible Supply Chains a better place. Throughout the year we focused on actions has been critical to weather the storm during this period of uncertainty, such as by reducing single-use cups and bottles at work, securing essential component supplies for production, and staying abreast of the recovery rate at 05 Innovation and Service collecting electronic products and batteries for our manufacturers’ facilities. The close collaboration between Acer and our partners has always closed-loop recycling, and providing education tools for the underprivileged. As we continue to been our competitive advantage. Through the concerted efforts of our management team, 06 Environment consolidate our data, to date we have saved a self-estimated equivalent of 60 tons of CO2 employees, and stakeholders, we are demonstrating the highest resilience to power through these emissions. times of high volatility. 07 Social Acer’s responsibility efforts have continued being recognized by global sustainability indices that This report adheres to the GRI Standards for sustainability reporting, and refers to the SASB 08 Corporate Social Responsibility benchmark environmental, social and governance (ESG) performance of organizations. For the reporting standards that focus on topics that matter to financial investors. We aim to Management Summary sixth consecutive year we have been listed in the Dow Jones Sustainability Indices (DJSI) Emerging communicate transparently and consistently, and work together with our stakeholders toward a Markets Index. We were included on the FTSE4Good Emerging