2016 ACER CORPORATE RESPONSIBILITY REPORT About this Report 03 Deepen Corporate Caring People 03 Governance 44 06 and Society 82 Message from the Chairman 04 About this Report Corporate Governance Structure 45 Employee Care and Development 83 Message from the Chairman Message from the Corporate President and CEO 05 Legal Compliance 49 Health and Safety in the Workplace 92 Message from the Corporate Internal Audits 51 The Power to Change the World 96 President and CEO Important Achievements in 2016 06 Sustainable Risk Management 52 Social Information 105 Important Achievements in 2016 1 Our Business Overview 2 Corporate Responsibility and Sustainable Values Our Business Technology for 3 Deepen Corporate Governance 01 Overview 09 04 the Future 56 07 Appendix 106 4 Technology for the Future 5 A Mission to Protect the Current Status and Development 10 UN Sustainable Development Independent Limited Assurance Environment Goals 57 Report 106 Brand Values and Introduction 11 6 Caring People and Society Innovative Research & Greenhouse Gas Verification Financial Performance 13 Development 63 Statement 107 7 Appendix Customer Service 66 GRI G4 Index 108 Corporate Responsibility A Mission to Protect 02 and Sustainable Values 14 05 the Environment 70 Corporate Responsibility Policy Incorporating Environmental and Strategy 15 Considerations into Product Design 71 Corporate Responsibility Governance 18 Responding to Energy and Climate Change 79 Stakeholder Engagement 19 Our Operations and Environment 81 Sustainable Supply Chain 34 About this Report ABOUT About this Report THIS REPORT Message from the Chairman Since 2008 Acer has issued annual corporate responsibility (CR) reports simultaneously in English and Chinese, External Assurance Message from the Corporate disclosing information and future plans on the three aspects of corporate governance, environment, and society. President and CEO Such reports enable stakeholders to better understand Acer's efforts and achievements in sustainable develop- This report commissioned the accounting firm KPMG in accordance with Important Achievements in 2016 ment and social responsibility. Previous years’ CR Reports and the latest information on sustainable development the limited assurance standards of ISAE3000 and in line with GRI G4 are available at the Acer Group's sustainability website Core Options. All financial data in this report was cited from financial 1 Our Business Overview http://www.acer-group.com/public/Sustainability/index.htm statement and has been verified by KPMG. GHG-related data have undergone verification by SGS. 2 Corporate Responsibility and Sustainable Values Report Boundaries and Scope Responses and Feedback 3 Deepen Corporate Governance This report is based on the principles of consolidated financial statements with regard to organizational boundaries. In scope, this report includes the Acer Group's subsidiaries, the Acer Foundation and the Gateway If you have any questions or suggestions regarding the Acer 2016 CR 4 Technology for the Future Foundation, but does not include reinvestment matters, and some performance information is not yet fully Report or sustainability issues, you are welcome to contact us. 5 A Mission to Protect the incorporated; where there are issues of data adjustment or estimation, they will be stated in the report text. For Environment more detailed finance and organizational information, please refer to the Acer Group's Investor Relations page Acer Corporate Sustainability Office (http://www.acer-group.com/public/Investor_Relations/index.htm) and the company's annual reports. Caring People and Society Address : 10F , 88 , Sec. 1 , Xintai 5th Rd. Xizhi , New Taipei City 6 221 , Taiwan 7 Appendix Report Issuing Dates and Frequency Telephone : + 886 2 2696 3131 ext. 3137 This report, released June 2017, discloses the Company's performance in key issues of sustainable development E-mail : [email protected] during 2016 (January 1, 2016 - December 31, 2016); however, for the sake of information completeness and Report download QR code : comparability, a portion of the performance data disclosed dates back to before 2016 or forward into 2017. Acer issues CR Reports each year, with the previous report issued June 2016. Report Compilation Principles The content and framework of this report follows the Global Reporting Initiative's 2013 fourth-generation guidelines (GRI G4); appended to this report is an index of GRI indicators and report content. 03 Message from the Chairman MESSAGE FROM About this Report THE CHAIRMAN Message from the Chairman In 2016 Acer celebrated its 40th anniversary and four decades In terms of products and solutions, 2016 has been an exciting year for Message from the Corporate ago, with our passion to change the world, we introduced micro- new BYOC innovations that are contributing to society. Besides our President and CEO processor technology to Taiwan and thus helped to establish and CloudProfessor IoT Starter Kit, which is helping to educate people about Important Achievements in 2016 progress the island’s high-tech industry. With our innovations, the Internet of Things, we have brought together the IoT devices of our such as Micro-Professor I, the Dragon Chinese Input Method and partners with cloud applications, to create new technologies and 1 Our Business Overview Aspire PCs, we have played a key role in transforming Taiwan into a solutions that are able to contribute to society. technology powerhouse, with thriving PC and semiconductor 2 Corporate Responsibility and In terms of its business, Acer continues to encourage employees to industries, and establishing it as a major player on the world stage. Sustainable Values adhere to its six core values: Passion, User-centric, Innovation, Team- But more than being a leader in the industry, Acer takes pride in work, Balance of Interests. Through this Acer continues to observe the 3 Deepen Corporate Governance being a catalyst of change and progress. principles of Wangdao to work with partners to create value and mutual 4 Technology for the Future Since our beginning, practicing corporate social responsibility has benefit as well as balance all stakeholders’ interests. As we face the been a part of everything we do. We remain committed to challenges ahead of us, we will continue to uphold our passion to change 5 A Mission to Protect the promoting the Sustainable Development Goals (SDG) set by the the world and grow and develop sustainably. Environment United Nations and have made notable progress in many of them. 6 Caring People and Society These include Health and Well-Being, Quality Education, Decent Work and Economic Growth, Climate Action, Sustainable Cities and 7 Appendix Communities, and Responsible Consumption and Production. In addition, we are proud to share with everyone that Acer has for the third year running been included in both the Dow Jones Sustainability Indices (DJSI) and the MSCI Global Sustainability Indexes. What’s more, we were also included on the new FTSE4Good Emerging Index in 2016. Chairman 04 Message from the Corporate President and CEO MESSAGE FROM THE CORPORATE About this Report PRESIDENT AND CEO Message from the Chairman Looking within our organization, we continue to make progress Our efforts have continued to be acknowledged for our transparency, Message from the Corporate towards realizing sustainable and responsible business operations. such as being ranked on the Taiwan Top 50 Corporate Sustainability President and CEO Among our many initiatives include our commitment to engaging Report, and for our overall performance, including our listing on the DJSI Important Achievements in 2016 with our suppliers and partners regarding sustainable develop- Emerging Markets Index and MSCI’s Global Sustainability Indexes. We ment. A great example of this has been our ability to reduce our have done particularly well in the areas of supply chain management, 1 Our Business Overview use of minerals sourced from facilities listed on the Conflict climate actions and corporate citizenship to name a few. Mineral Smelter list. By 2017 we aim to completely eliminate the 2 Corporate Responsibility and Looking ahead, Acer will continue to strive for excellence and remain sourcing of minerals from these facilities. Sustainable Values dedicated to transforming to a hardware + software + services company. Through stringent auditing, routine communications and other In terms of end-users and customers, we will also continue to focus on 3 Deepen Corporate Governance engagements, we have been achieving great outcomes. In the needs of people as a starting point for all we do, in the process 4 Technology for the Future addition to engaging with our suppliers, we are also reaching out creating more value for all stakeholders and achieving excellence. to the scientific and academic communities to ensure that we 5 A Mission to Protect the have open lines of communications with stakeholders from Environment beyond our industry. In the area of carbon emissions, we also 6 Caring People and Society continue to push forward in our fight against climate change and are on track to reduce our emissions by 60% by 2020. 7 Appendix Contributing to our communities and society at large, we remain steadfast in investing in their improvement. One such area is that of education; where we are running programs and developing technologies to break down the digital divide. Among them are initiatives that utilize Acer’s CloudProfessor IoT Starter Kit to open up new opportunities for disadvantaged children in the era of