CORPORATE SOCIAL RESPONSIBILITY REPORT ELITEGROUP COMPUTER ... · (2009 Elitegroup Computer Systems Corporate Social Responsibility Report) Contact of this report: Green Assurance

Corporate Social Responsibility Report

1

CORPORATE SOCIAL RESPONSIBILITY REPORT ELITEGROUP COMPUTER SYSTEMS

2009


2

Elitegroup Computer Systems Corporate Social Responsibility Report

Elitegroup Computer Systems, reveals the current state of corporate social responsibility,

published the first corporate social responsibility report in 2010.

(2009 Elitegroup Computer Systems Corporate Social Responsibility Report)

Contact of this report:

Green Assurance System Department

Global Supply Chain Management Division

ELITEGROUP Computer

TEL:02-2162-1177 #25435

Fax: 02-2659-7566

E-Mail: [email protected]

Report Scope and Boundaries:

The contents of this report cover Taiwan and Mainland China and present the corporate

administration, social participation, environmental protection practices as well as other

performance data of Elitegroup Computer Systems during the year 2009

(20090101~20091231). This report references the Third Generation of the Global

Sustainability Reporting Guidelines (G3) created by the Global Reporting Initiative (GRI).

An environmentally friendly, paperless, electronic version of this report is available for

download at the company’s Green Website.


3

Table of Contents: GRI Page

Chapter 1 Corporate Governance

1.1 A Word from the Chairman

1.2 Business Philosophy and Vision

1.1

1.1

4

5

Chapter 2 Company Overview

2.1 Company Introduction

2.2 Organizational Structure and

Administration

2.3 Business and Product Content

2.1,2.2,2.4,2.8,2.10,4.1,E

C1,LA1,LA2, 2.9, 4.1, 4.8

2.2,2.7

6

9

9

Chapter 3 Quality and Service

3.1 Quality Performance

3.2 Supply Chain Management

3.3 Product Support

PR3

HR2

PR8

11

13

14

Chapter 4 Personnel Management

4.1 Human Rights and Anti-Discrimination

4.2 Employee Welfare

4.3 Employee Education and Training

4.4 Social Participation and Feedback

4.5 Health, Safety and Crisis Management

LA5,S03

EC3, LA11, LA14, HR3

LA10, LA11

S01, LA7, LA8,

15

16

17

18

19

Chapter 5 Environmental Performance

5.1 Green Product Policy

5.2 Explanation of Green Regulations

Implementation

5.3 Green Product Management Process

5.4 Green Product Management System

5.5 Organization of Greenhouse Gas

Inventory

5.6 Product Carbon Footprint

5.7 Green Design

5.8 Environment Management

5.9 Energy-saving and Waste Reduction

EN2.6

EN2.8

EN2

PR5

EN16

EN18

EN27

EN7

EN3, EN8,EN10,EN21

20

21

22

24

26

27

30

35

36


4

1.1 A Word from the Chairman

Understanding our duty to protect the environment for the

good of the planet and all its citizens, we have a profound

belief in using the ideas “Build and develop without

damaging the environment, grow and prosper without

polluting the Earth” as the corporate development strategy.

By taking environment protection and the valuing of

resources into consideration, as well as using the principles

of degradability, non-toxicity, and energy-saving to make up

our design core, we have worked out the best choice for

customers and have created a healthy living environment

for consumers.

Chairman W.Y. Lin

ECS has been working to promote CSR (Corporate Social Responsibility) to set a new

level in its journey to sustainability. In 2010 we continue to promote plans related to CSR.

These plans primarily focus on dealing with global warming, energy conservation and

waste reduction, active promotion of carbon reduction in construction projects, the carbon

footprint and other special cases to create a sustainable energy environment.

In order to save energy and reduce carbon, ECS’s products are made of low-energy components. These components are produced in factories that use low-energy equipment and implement efficient working hour management and workflow improvement practices. These factories also make appropriate use of all energy resources, stress greenhouse gas management, reduce electricity used in production and cut down on the emission of greenhouse gases.

ECS is currently involved with projects that include government and customer participation to promote carbon footprint management. The transparency of these projects allows ECS to keep track of every step of the manufacturing of its products and then improve the carbon usage in each sector. It also improves the workflow of each process and reduces carbon emissions during the product life cycle. This creates a positive contribution to efforts to reduce greenhouse gases.

ECS Green product designs are implemented during the earliest stages of product development and green regulations are followed during the final supply phase. ECS


5

continues to produce under the principles of green factory management, prevent damage to the surrounding environment, reduce product energy consumption through design, reduce transit energy consumption through product package design and evaluate the feasibility and convenience of product recycling. Therefore, ECS’ products accord with international environmental law. The green regulations of machine components and product electricity consumption designs accord with European Union eco-directives and other environmental protection requirements. They also complement future environmental protection demands. New green requirements can be incorporated into the environment protection design principles at any time.

ECS implements a policy of corporate social responsibility. The specific goals of 2009 included the following: implementation of social human rights, ensuring of employee protection, environmental safety management, health, safety and crisis management policies, achievement of a peaceful, accident-free work environment, green operation management to create products that are not harmful and can be recycled, and the use of environmental protection to create a healthy and prosperous life.

ECS is a member of the global village that ardently expects the creation of new technology to offer superior products, enact energy conservation, environmental protection, and healthy living. It is a company that fulfills its responsibility for the people of the world in its corporate vision and constantly encourages itself to strive to reach the goal of operational sustainability.

W.Y. Lin Chairman of Elitegroup Computer Systems Co., LTD.


6

1.2 Philosophy and Vision

Enthusiasm, innovation and discipline are the core values of ECS. The people of

ECS are enthusiastic about their work, dedicated to product innovation and maintain

discipline during daily operations. Quality, speed and discipline make up the

standard at ECS and this standard is ensured at every level of daily operations.

Speed is the primary requirement for the company’s development. Commitment to

product research and development, good quality standards, ability to meet the

requirements of the customer have long been the goals of ECS.

ECS was founded in 1987 as a global, professional producer for the design,

production and sale of computer products. Its product line includes motherboards,

graphics cards, desktop and laptop computers and portable mobile devices. The

company produces innovative and quality products to remain competitive and satisfy

the current and ever-changing needs of the consumer.

During its past 23 years, ECS experienced many hardships during the company’s

foundation but is happy to achieve growth in company operations as well as see its

business expand at a rapid rate. We have a strong belief that innovative technology

is the only way to create valuable products. Complete quality control, alleviation of

customer concerns, satisfaction of customer requirements, quality product research

and development and production without polluting the earth are the objectives that

ECS continues to achieve.

Looking forward the global market, ECS will focus on innovative technology that

enriches human lives and improves quality of life. Product design, procurement,

production, sale, service, resource recovery processes will all be conducted using

green methods to achieve the “toxin-free, low-consumption, easily-disassembled,

recyclable” standard of product design and manufacturing. Toxin-free products and

low-carbon emissions will be used to put the ideas of caring for the Earth,

environmental protection and sustainable development into practice.


7

Chapter 2 Company Overview:

2.1 Mile Stone 2008 February 2008 – Service Alliance Mart. Inc. subsidiary completes clearance

operations.

2007 August 2007 – Xingying Technology (Shenzhen) Co., Ltd. is obtained as an indirect

subsidiary with 100% equity.

2006 July 2006 – Investment in the foundation of Dawei Precision Co., Ltd. which is involved

in the design of computer connectors manufacturing.

2005 March 2005 - Establishment of subsidiary in the Czech Republic to serve as a base for

desktop computer production.

July 2005 - Establishment of subsidiary in Mexico to serve as a base for desktop

computer production.

2004 Established subsidiary in South Korea to expand business in the Korean market

2003 Investment in PC WAVE Inc. which is later renamed to PCCHIPS USA Inc.

2000 Investment in China factories to increase production capacity.

1999 Danshui plant awarded ISO14000 certification。

1998 First to offer mini-level, easy-to-assemble barebone and system products.

1997 Pioneered the release of 100MHz Socket 7 compatible products in the market.

1996 Danshui plant awarded ISO 9001 certification, and, Taoyuan plant awarded ISO 9002

certification.

1995 Dual CPU motherboard (P6FX2-A) won the 1985 National Quality Award.

1994 Invested and started production of CD-ROM drives and multimedia systems

1993 Application for selling shares on the public market on September 21st.

1992 Established a subsidiary in Hong Kong to expand market operations in the area.

1991 Awarded a 5A producer rating by “Markets and Market Conditions Magazine.”

1990 Established a subsidiary in Singapore and Canada to expand business in Southeast

Asia and Canada

1989 Established a subsidiary in Germany and Japan to expand business in Germany,

Eastern Europe and Northeast Asia.

1988 Established subsidiary in the UK to expand business in Western European markets.

1987 Company was founded with startup capital of NTD 5 million.

1987 Introduction of the leading 32-bit microcomputer motherboard.


8

ECS commits to technology innovation and the awards for its products are listed below:

Award Product Type Award Date Issuing Unit Region

A785GM-M 2009/11/26 PC magazine Best Buy Bulgaria

A785GM-M 2009/11/13

PC ekspert

Recommended Product Croatia

P55H-A 2009/10/27

Hardwareoverclock

Best Price Germany

P55H-A 2009/09/08 Driverheaven.net Value

Award England

X58B-A 2009/08/11 Fudzilla Top Value Austria

NGTS250-1GMU-F 2009/07/05

DragonSteelMods

Recommended Award United States

X58B-A 2009/06/30

Futurelooks Recomm

ended Award Canada

X58B-A2 2009/05/28

Pckoloji.com

Performance Award Turkey, Europe

NGTS250-1GMU-F 2009/04/27

MaximoPC.org Produ

ct Recommendation Argentina

A780GM-A 2009/03/31

EasyCOM(Russia) Pri

ce/Opportunity Russia

A790GXM-AD3 2009/02/28

Computer DIY

Magazine Best Value Taiwan

X58B-A 2009/01/21

Bjorn3D Seal of

Approval United States

A780GM-A Ultra 2009/01/06 OCworkbench.com

Best Value Award Singapore

X58B-A 2009/01/05

Noticias3D Best Choice

Award Spain


9

ECS Basic Information

Staff Distribution Table

Year 2009 (number of person)

Direct Staff 7,389

Indirect Staff 3,915 Employees

Total 11,304

Male 4,771 Genders

Female 6,533

Average Age 34.7

Average Length of Service 5.1

Ph. D. 1

Master’s Degree 244

College 2,520

High School 6,239

Educational

Background

Distribution

Elementary 2,300

Staff Age Distribution Table

Age Distribution

(year of age)

2009

(Number of

person)

60+ 1

50~60 48

40~50 408

30~40 1,590

20~30 6,363

Under 20 2,894

Capital

USD385.3

Million

2009

Revenue

USD1,704 Million

Shareholders:

67,537

persons

Employee

1,1304

persons


10

2.2 Organizational Structure and Administration In terms of corporate administration, ECS operates in accordance with relevant laws,

regulations and codes of conduct for publicly-traded companies. Each director and

supervisor has all necessary expertise of operation and management. The company’s

internal affairs department includes an auditing committee which carries out audits and

improvements for each project.

ECS Organization Chart:


11

2.3 Business and Product Content

ECS was founded in 1987and has maintained its devotion to innovation and service. It

has consistently directed this devotion to computer product design and manufacture as

well as the enrichment of human life. ECS product line includes motherboards, graphics

cards, desktop and notebook computers and portable mobile devices with quality and

competitiveness to satisfy consumer needs.

Business Scope

ECS Main Business：

Computer product design and contract manufacturing services: Use

the latest technology to develop a complete product line to meet

market requirements. Offer contract manufacturing services for

major, global computer brands.

Global computer product sales channels: Sell ECS brand

motherboards, graphics cards and add-on cards through authorized

dealers around the world.

Main Products

ECS product line includes motherboards, graphics cards, desktop and

computers and portable mobile devices.

Motherboards: Design and manufacture of motherboards for

commercial and consumer desktop and notebook computers.

Graphics Cards: Design and manufacture of graphics cards for

commercial and consumer desktop computers.

Desktop Computers: Design and manufacture of complete

commercial and consumer desktop computers..

Notebook Computers: Design and manufacture of complete

commercial and consumer notebook computers.

Portable Mobile Devices: Complete design and manufacture of

mobile phones for personal use as well as development and

production of communication modules.


12

ECS Product Lines

System Level Products

Commercial & Consumer Desktop and notebook Computers systems

Usage and Function

Computers suitable for

government, corporate,

school, hospital and home

needs, such as storage,

computation, information

transmission and

entertainment.

Manufacturing Process

OEM and ODM for complete design, procurement, manufacture, packaging, transportation and warehousing

Portable Mobile Device Products

Mobile Phones Communication Modules

Usage and Function

Suitable for personal communications, entertainment and


OEM and ODM for complete design, procurement, manufacture, packaging, transportation and warehousing.

Motherboard & Graphics Card

- Commercial and

consumer Desktop and notebook Computer Motherboards

- Graphics card

Usage and Function

Computers suitable for government, corporate, school, hospital and home needs, such as storage, computation, information transmission and entertainment.


OEM and ODM for complete design, procurement, manufacture, packaging, transportation and warehousing.


13

Chapter 3 Quality and Service:

3.1 Quality Management:

Superior product quality is always a competitive edge for ECS. ECS focuses on supplier,

factory and customer management. During 2009 ECS launched quality information

systems. The Quality Information Systems consolidated the information and data

among the main office with different manufacturing sites for better troubleshooting,

tracking and analysis. The Quality Systems integrate related systematic processes,

reduce human error, and continuously improve product value and services, so that

customer satisfaction is achieved.

Supplier quality was improved on a large scale in 2009. This progress came from

continuous improvements in the supplier’s internal department. ECS routinely review

suppliers’ quality inspection and implement actions. In the factory management

department, shop floor information system (SFIS) is used to collect information, and,

customer management department measures customer satisfaction. After quality

conditions and customer feedback is collected, each related department carry out the

improvement plan. Zero-defect and customer satisfaction are the main goal of Quality

Information Systems.


14

ECS is not only devoted to product development and technological innovation, it also

establishes quality policies. Customer requirements and standard operation process

serve as a base to ensure that every link in the workflow. From product development,

design, manufacturing to testing, it is well managed in ECS under IECQ QC 080000 and

ISO 9001 certificates.

ISO certificates and Conferences

ISO 14001 ISO 9001 IECQ QC 080000 Quality Conference

Plant and Company Product Registration and ISO Certification

Suzhou Factory ISO 9001:2000 Laptop

Suzhou Factory ISO 14001:2004 Laptop

Suzhou Factory IECQ QC 080000 Laptop

Xingying Factory ISO 9001:2000 Circuit board and Motherboard

Xingying Factory ISO 14001:2004 Circuit board and Motherboard

Xingying Factory IECQ QC 08000 Circuit board and Motherboard

Baoxun Factory ISO 9001:2000 Circuit board

Baoxun Factory ISO 14001:2004 Circuit board

Baoxun Factory IECQ QC 080000 Circuit board

Corporation ISO 9001:2000 Notebook/graphics card/desktop

Corporation IECQ QC 080000 Notebook/graphics card/desktop


15

3.2 Supply Chain Management:

Supply Chain Joint Declaration on Corporate Social Responsibility

Under the theme “Joint building of a Green Pledge System” ECS had the first Supply

Chain Management Conference in 2009. Suppliers from equipments, raw materials,

factory operations, and component industries were invited. This supplier conference

was held as a means to examine the requirements of each international green regulation,

achieve the level of a green supplier by offering green components and to form a green

supply chain system. During the conference, ECS and representatives from different

suppliers agreed to create green products and concluded “In Search Green Excellence”

as a goal. It also concluded “Develop green production, supply green products,

construct a green supply chain and increase green competition to create sustainable

business opportunities.”

ECS implemented a green supply chain management system since 2007. Established a

green purchasing standard procedure through vendor source management, in-factory

production process and raw materials inspection, ECS ensures all products comply with

the requirements of relevant environmental directives. It was also verified in 2007 by

SGS IECQ QC 080000 certificate about effectiveness of hazardous substance

management.

ECS cooperated with Ministry of Economic Affairs Industrial Development Bureau RoHS

in 2006 for a counseling project. It was divided into management systems, supervision

and control and production process execution. The purpose of the project was to

investigate the suppliers’ green products. In addition, the company conducted on-site

counseling and testing for primary suppliers as well as provided improvement solutions for

suppliers. The key points of green management that was put into practice are as follows:

• Restriction of Hazardous Materials Management

－ Establish a detailed list for the ECS hazardous substance management system.

－ Encouraged suppliers sign a green guarantee and submit a materials testing

report to ensure that its products are in compliance with the system’s regulations.

－ Require an inspection of hazardous substance to endure that every component

meets green regulations.

企


16

•Supplier Education

－ Classify suppliers based on material attributes and level of risk.

－ ECS will compile a written review or an on-site evaluation and education to ensure

that green suppliers have efficient management.

• Green Procurement Management

ECS delivers the documents about green purchasing requirements and green supplier

management along with the order through the purchasing system to the supplier.

• Supplier Rating

－ Add the supplier’s hazardous substance management result to the company’s rating

program.

－ Any supplier who obtains the relevant environmentally friendly or hazardous material

management certificate (ISO14001 or IECQ QC 080000), will be highly recognized.


17

3.3 Product Service:

Offering top-quality products and services, and, ensuring customer satisfaction, ECS

created a sound service system to raise total management quality.

－ Narrow information flow through system to improve repair and transport

services.

－ Collect data from each repair center through a network and use it to conduct real

time analysis.

－ Manage customer information immediately and use of it to complete relevant

contact and handling duties.

On-line repair inquiry system

Global repair centers


18

Chapter 4 Social Contribution:

4.1 Human Rights and Anti-Discrimination: ECS complies with the United Nations Declaration of Global Human Rights in that it does

not discriminate against its employees regardless of race, gender, political affiliation,

religious beliefs, disabilities, pregnancies, participation in social organizations or marital

status. Hiring practices respect local regulations regarding minimum age requirements,

local decrees, EICC and other relevant regulations. ECS advocates a comprehensive

Freely chosen employment, legal employment, respect for human rights, fair and just”

labor ethics policy.

Freely chosen employment

－ Do not used forced, bonded or bound by contract labor.

－ Ensure that staff employment conditions are voluntary.

－ Employee retains the right to leave under notice in accordance with the law.

－ Ensure that employee ID cards or related documents are not used as collateral.

－

Child labor avoidance

Compliance with local laws and regulations for minimum age requirements to ensure

that no child labor is used.

Working Hours

－ Provide paid leave for employees every year.

－ Do not force employees to work more than the maximum working hours dictated

by local law.

Wages and benefits

Comply with applicable wage laws, including minimum wage requirements by local

governments, and issue salaries in a timely manner.

Freedom of association

－ Respect the rights of employees and allow them to participate in social organizations.

－ Set up an “Employee Suggestion Box” and hold regular staff meetings so that employees may communicate with the management division without worry about retaliation, threats or harassment.


19

Humane treatment

Prohibit the cruel or inhumane treatment of employees, including any form of

harassment, physical punishment or threats of such acts.

Non-Discrimination

Ensure that employees are not discriminated against because of race, color, age,

gender, disability, pregnancy, religion, political affiliation or marital status during

appointment or work procedures (e.g. promotions, salary adjustments, rewards,

education and training, etc.) Every person has the right to equal protection against

any form of discrimination.

No Improper Advantages

－ Respect the code of ethics and prohibit any form of corruption, acceptance of

bribes and other forms of improper profiting behavior.

－ Full promotion of a “Report Reward System” to encourage staff to expose any

form of improper profiting behavior.

Protection of identity

Establish procedures to prevent the leakage of employee information and protect the

confidentiality of employees making suggestions or reporting offenses.

Health and Safety

Provide employees with a mutual trust and a respectful, healthy and safe environment.

Staff Training and Self-Development

Provide facilities, training programs, time and subsidies to support employee career

development.


20

4.2 Staff Welfare: 4.2.1 Staff and Community Activities: Organize events and rest activities to enrich

employee’s life, knowledge and spiritual growth of all.

ECS Family Day Cycling Softball Community

Yoga Community Badminton Community Billiards Community

4.2.2 Employee Benefits

Create a committee to conduct comprehensive welfare and care.


21

4.3 Staff Education and Training: Expanding business scope rapidly, ECS recruits talented people to join the corporate to

create a peak enterprise are underway. ECS strongly believes that talented staff is the

most precious resource. In order to enhance staff knowledge and abilities, it has

established a wide range of education and training programs. ECS also respects the

self-development needs of colleagues and focuses on manpower training and

development, and commits to improving the quality of its labor force and strengthening its

base-level management skills. ECS HR team employs cooperative function systems,

active distribution of training on all levels and a reserve of human resources. It has

established a system of internal lecturers and professional technical training. In order to

stimulate full employee potential and drive organizational activity, employee training is

viewed as the company’s second specialty. ECS hopes to strengthen the professional

capacity, self-management ability, work attitude and establish a deeply-rooted set of core

values for all staff in order to ensure that the company and its employees thrive together.

4.4 Social Participation and Feedback Elite Cup “Bullfight” Basketball Tournament

A joint-basketball plays between ECS and communities at Lishan Junior High School.

Many visitors at the location also took part in the basketball shooting match.

Sichuan Earthquake and 8-8 Flood fund-raising activities

Sichuan earthquake committee raised NTD 60,000 in funds for disaster relief with an

additional RMB 3 million donated by the company.

8-8 Flood committee raised NTD 600,000 in funds for disaster relief with an additional

NTD 15 million donated by the company.

Elite Grateful Heart Warm Feelings of May

ECS joined events between neighborhood communities and flea markets for handicapped

children with Eden Foundation and the Red Cross, and donated all income to

disadvantaged groups.


22

Swim Across Sun Moon Lake

ECS aggressively participates in social activities to enhance the physical and mental

well-being of the entire staff and strengthens social networks and expand social relations.

The annual event of swimming across Sun Moon Lake links tightly ECS with community.

Basketball Community

Colleague Donations for Sichuan earthquake

Eden Foundation Charity

Annual Swim Across Sun Moon Lake


23

4.5 Health, Safety and Environmental Management

Developing safety operation management on the factory-side, ECS guide, support and

educate staff dealing with the management and use of dangerous and hazardous

materials. Internally, the administration team provides the factory employees with

information about potential hazards of chemical substances and basic knowledge

about prevention and response measures. That prevents from disasters and

environmental pollution in the workplace and conduct annual indoor environment

testing procedures in accordance with relevant laws and regulations.

－ To ensure the safe operation of equipment, every work must be checked in

advance in addition to regular inspections and general inspections of various

ranges.

－ These inspections also ensure that faulty machinery does not result in injuries or

death of personnel when it is used.

－ Dangerous mechanical equipment includes the following: lifts, pressure vessels,

gas tanks, air compressors, high and low voltage electrical equipment and

in-factory motor vehicles.

－ In addition to routine in-house inspection and maintenance, legal, professional

bodies must be regularly commissioned to implement overall equipment testing,

maintenance and reporting.

－ This will strengthen the working principles and safety regulation training of

personnel and prevent operation in violation of regulation.

－ Ensure quick and effective measures can be taken to control the situation in case

fires, natural disasters or other accidents occur, ECS sets up an emergency

management program and emergency equipment utilization guidance in each

worksite. This program includes personnel training to eliminate the disaster

when it occurs. ECS also regularly conducts relevant emergency response

training and practices to increase staff familiarity with the SOP of accident

management. ECS holds fire evacuation drills in headquarters and factories

sites every year.

ECS reaches pollution and hazard prevention through the simultaneous operation

within the ISO 14001 Environmental Management System and the OHSAS 18001

Occupational Health and Safety Management System. Implement PDCA, P-Plan,

D-Do, C-Check and A-Action, a system of source management and improvement.


24

Public Safety Event Unit：Number of People

Location 2007 2008 2009

Taipei HQ 0 0 0

Shengzen Factory 0 0 0

Suzhou Factory 0 1 1

Staff Fire Drill On-site First Aid Training


25

Chapter 5 Environmental Performance:

5.1 Green Product Policy

Along with environmental consciousness

is on the rise in recent years, green

advocates are appearing on the

international stage. ECS upholds the

“Green Touch, Good Life” philosophy to

make great strides for the planet

protection. In view of climate change

and protecting the natural environment,

ECS has begun gathering legal

requirements and environmental policies

worldwide, and used this information to

draft an environmental policy and

conduct advance evaluations to

determine products in green

requirements.

ECS Environmental Policy

The environmental protection design concept was implemented into the product

development process. The concept included energy-saving, material reduction,

ease-of-recyclability and hazardous substance free. ECS has set up a green team in

each factory to work on the environmental solutions. It has implemented internal testing

and management to ensure all products conform to environmental protection

requirements. Additionally, ECS ensures that material is well managed from the source.

From 2007 on, ECS has been adopting the GPM (Green Product Management) system.

This system ensures all material and every step of the process follow international green

regulations from part to finished product. It also guaranteed the reduction of harmful

materials to protect the Earth.


26


27

5.2 Green Regulation Implementation:

1. RoHS (Restriction of Hazardous Substance Directive) Management:

ECS adopted a GPM system in 2007 and took strict measures to ensure standards for

all its materials. It implements hazardous substance management from component

to finished product. This practice lowers the amount of harmful products that enter

our households and reduces injury to the development and survival of the human race.

In order to cooperate with the Earth protection, international development trends and

customer requirements, ECS products comply with RoHS regulations. ECS also

implements hazardous substance management and control in its products,

components, packaging, as well as shop floor process to ensure that products do not

contain prohibited hazardous substances.

2. WEEE (Waste Electrical and Electronic Equipment Directive) Management:

ECS has been fully complied with European Union’s EU WEEE requirements and

reduce the amount of environmental waste to prevent excessive electric waste

materials from entering landfills. ECS increases the resource reuse ratio, also,

lowers the amount of environmental impact caused by its products. The recovery

rate of ECS products is over 75%, the recycling and reuse rate is over 65%.

3. EuP (Energy Using Products Directive) Management:

With the current popularity and extensive use of electronic products, it is necessary to

come up with a solution to energy consumption and other eco-design problems. ECS

adopted the Lot 6 standby and power-off mode power consumption standards in

September 2009. ECS also applies the Lot 7 standards for battery chargers and


28

external power supplies. In accordance with relevant regulation requirements and to

comply with the spirit of the EuP directive, ECS has taken steps; Eco-design,

Conformity, Assessment and Self-Declaration to disclose the relative information about

hazardous-substances-free products to public. The basis for the Energy-Related

Product Eco-design Directive (abbreviated ErP Directive), is the expectation to think in

terms of lifecycles when creating an eco-design. It also includes improved product

energy usage and maximum reduction of environmental impact throughout the

product’s lifecycle.

4. HF (Halogen-Free) Management:

In response to the environmentally friendly development of halogen-free, ECS worked

on manufacturing solution and conquered the cost-increase issue, and, started using

the HF components in September 2008. It ensures all products comply with limited

CI (chlorine) and BR (bromine) standards and to achieve the objective of prohibition of

PVC and BFR.

Halogen-Free Component Requirements

Limits:

Br<900 ppm、Cl<900 ppm

Br+Cl < 1500 ppm

5. Reach (Registration, Evaluation, Authorization and Restriction of Chemical

Substances) Management:

The EU Reach Directive is meant to strengthen the protection of human health and the

environment as well as prevent damage by chemical substances. ECS officially

adopted the directive in January 2010, and request suppliers to submit a report of all

chemical substances used in their parts and components. That further guarantees

that ECS products comply with green regulations.


29

5.3 Green Product Management: ECS fully adopted the “green product” concept in 2007 through the implementation of the

“Green Competitive Advantage Quality Program” and green quality innovation. It

achieved the four non-toxic management controls: “Non-Toxic Suppliers,” “Non-Toxic

Materials,” “Non-Toxic Processes” and “Non-Toxic Products.” This management control

system is carried out in every link of the business operation.

Green Supply Chain:

The global industry is concerned with environmental issues. When consumers consider

their product use, they also take into account their impact on the environment and

possible permanent harm that they might cause. This forces vendors to employ

low-pollution production and hazardous-substance-free material. To enter and drive the

green consumer product market, ECS chooses vendors with green qualifications and

uses a supplier management system for the entire production process. ECS has

established a supplier selection and evaluation mechanism to efficiently manage the

green supply chain products and request suppliers to obtain IECQ QC 080000

certification. This certification qualifies vendors through a hazardous substance

management system so that they can provide customers with proof components. Those

qualified vendors also reveal their products which comply with the RoHS and WEEE

environmental directives. ECS only purchases green components that are proved by

systems in the production process. By carrying out an onsite management and

inspection system with all suppliers, ECS establishes a quick and complete supply

program through its green suppliers.

Green Factories:

ECS has constructed a green production system. It employs green component

inspection, management and control, set parameters in the production process, additional

material and purchase, semi-finished and finished product management and other

measures. These measures are used to provide a green product with an optimized

production process and the most reliable green quality assurance. Under the strict

adherence to obtained ISO 14001, IECQ QC 080000, OHSAS 18001 management

system certifications, full environmental protection, labor rights and staff care

responsibilities are ensured. ECS green production policy is adopted through an IECQ

QC 080000 certification strategy. It utilizes a green production process and adopts

systematic management methods. With the adoption of the green assistance program, a

platform for IQC, PQC, consumable supplies, OQC testing records, abnormality tracking

and feedback.


30

Management of Each Production Process in the Green Quality Management System is

listed below:

Green Marketing, Green Service

In response to global warming, ECS green marketing focuses on energy-saving and

carbon reduction. It uses light, attractive, small product designs to reduce energy waste

during product transport and reducing carbon emissions at the same time. It also

expects to use online marketing for brand and product promotion to replace traditional

marketing techniques to reduce the waste of resources. Naturally, the ECS global

distribution system is supported by accurate control over customer stock to make the

most effective logistics operation.


31

Green Product Recycling

Echoing the idea of 3R (Reuse, Recycle, Recovery), ECS starts from the product

design phase in order to save the limited resource on the planet. It uses the

concepts of recyclability, reusability, degradability and disassembly to reduce the

waste. For example, the EU’s WEEE (Waste Electrical and Electronic Equipment

Directive) emphasizes Reuse, Recycle and Recovery.

ECS branded motherboards and systems are registered under the WEEE directive in

Germany and the company provides recycling services for these products.

www.stiftung-ear.de/hersteller

EU WEEE Recycling Label

The overall recovery rate of motherboards, desktop computers, laptop computers and

other products developed and manufactured by ECS is over 85%, which actually

exceeds the WEEE Directive standard of 75%.

Overall Recovery Rate (3R) = Reuse + Recycle + Recovery


32

5.4 Green Product Management System: ECS GPM (Green Product Management) system includes green component data storage,

green information management, green vendor tracking and review. It raises efficiency

for large quantity of restricted substance data verification. It also regulates document

collection and verification. After vendors upload green component data, a notification

and ECS Green Data System will verify it according to QVL approval process. The

green component data will be uploaded to ECS Green BOM system after it is approved.

Based on green parts and green BOM database, ECS guarantees the green production

and green products meet RoHS standards. It also defines a clear responsibility between

the two ECS and vendors as well as a tracking system.

Vendors’ product information:

Green Declaration: vendors are committed to offer components that do not contain

hazardous substance and comply with international green regulation.

Third-party Verification Reports: guarantee that components do not contain

hazardous substance.

MCD Form Completion: use a single system to provide green information about all

substances used in the component.


33

International ISO Certification

ISO 14001 Environment Management System: Consider environmental impact,

comply with environmental protection regulations and formulate a management

plan and improvement objective. Regularly monitor and make continuous

improvements.

IECQ QC 080000 Green Management System: Production management system

requirements for hazardous substances in electrical and electronic components

and products must comply with RoHS, WEEE and other hazardous substance

management support bases.

ISO9001: 2000 Quality Management System: Quality Management System can

be applied in research and development, procurement, manufacturing, quality

control, warehousing and other processes to fulfill the restricted substance

management objective.


34

5.5 Organization of Greenhouse Gas Inventory In recent years, greenhouse gas emission becomes a global issue. To save the

environment for human survival, ECS adopted greenhouse gas inventory policies in 2008.

These policies keep track of CO2 emissions from its headquarters and factories, and

adopted operation guidelines as a basis for carbon reduction. Followed ISO 14064-1 Greenhouse Gases Part I regulation, ECS has built up a mechanism (Greenhouse Gas Management Committee) to manage greenhouse gas emissions and setup a reporting system for tracking and review. The reporting system combines Greenhouse Gas Accounting Protocol (GHG Protocol) and other relevant forms and tools to carry out the inventory which is relevance, integrity, consistency, accuracy and transparency. It covers the six kinds of greenhouse gas defined by the Kyoto Protocol, including, carbon dioxide (CO2), methane (CH4), nitrous oxide (N20), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and Sulphur Hexafluoride (SF6).


35

Certificate of Greenhouse Gas Inventory

ECS greenhouse gas production was 51,788 metric tons of CO2e in 2009. Compared to the 64,478 metric tons of CO2e produced in 2008, this was a 20% reduction. ECS is dedicated to reduce carbon emissions and mitigate climate change.

Unit: Metric Tons CO2e

Location 2007 2008 2009

Taipei HQ 3,241 2,966 3,539

Shengzen Factory 63,570 49,368 36,161

Suzhou Factory 10,076 13,145 12,088

Total 76,888 65,478 51,788

Greenhouse Gas Emissions


36

5.6 Product Carbon Footprint

Climate change has become a main issue and causes the industry working on the

solutions continuously. Therefore carbon emission information disclosure is very

important. In 2009, ECS joined a green project with the government for carbon emission

evaluation of each product. ECS has used this project as an important base for further

greenhouse gas reduction plan and implementation. The emission is calculated from

raw materials, production and delivery to consumer usage and disposal, at every stage of

the product lifecycle. Through total carbon emission disclosure of each product, ECS

hoped to co-work with the government to reach the core of carbon reduction plan – to

educate end users become a sustainable consumers.

Carbon Footprint Project (Desktop Computers) Format: Customer Request

Cooperation: ITRI, Taiwan Sustainable Development Association

Program Start: 2009/9/30 participation in carbon footprint plan for DT

Product: DT & MB

Standard：WBCSD GHG Protocol:2010

Inventory Range: Factories + Manufacturing + Use + Transportation + Recycling

CFP Output Time：Expected CFP completion in 2011 Q2


37

Progress：

Beginning Meeting----2009/09/30

Education and Training----2009/10/23

Inventory Conducted----2010/Q3~Q4

Completion—2011/Q2

Carbon Footprint Label-2011/Q4

2010/3/12 ECS completed greenhouse gas inventory report for 2009

2010/3/31 2009 greenhouse gas inventory information provision was completed

2010 Q3 Start supply chain greenhouse gas inventory

Carbon Footprint Project (Laptop Computers) Format: Government-led Project

Host: Integrated Service Technology

Support：Central Division

Counseling Period：2010/1/8 ~ 201010/31

Product：NB

Standard：PAS 2050:2008

Inventory Range : Factories + Manufacturing + Transportation

CFP Output Time：Expected CFP completion in 2010

Progress：

Beginning Meeting------2010/03/12

Education and Training------2010/04/22~27

Inventory Conducted------2010/08/02

Carbon Footprint Completed---2010/10/04

External verification ---2010/10/22


38

5.7 Green Design ECS adopts international environmental standard as its green design concept;

degradability, less packaging, low energy consumption, less plastic and others into every

green product design to fulfill with future environmental requirements.

Degradability

Based on the WEEE directive, ECS incorporates easy disassembly concept into its

product designs. It uses explosion diagrams to analyze a product’s degradability. Each

product analysis diagram is included in a composite diagram and measures the total

degradable time. That helps to improve the product assembly process and reduces

recycling time. All this complies with the requirements set by the WEEE regulation.

ECS has created a degradability guide for recycling plants to fulfill customers’

environmental requirements. ECS also calculates the recycle rate for its products (3R=

Reuse + Recycle + Recovery).

Less Packaging

ECS not only considers the protection of its product, but also pays special attention to the

environment protection. Meeting the EU Packaging Directive and other international

standards, ECS chooses packaging material that is recyclable and nontoxic. ECS

manages packaging materials and fully complies with the content of the EU-issued

Packaging and Packaging Waste Directive (94/62/EC). The company expends the

largest effort to environmental protection and resource recovery.

Reduce the volume of packaging materials: In order to reduce the use of packaging


39

materials and still achieve protection, many strict testing procedures must be carried out.

These procedures will add to the total cost and extend the development time. However,

they will reduce transport volumes and thus reduce greenhouse gas production that

occurs during transport. ECS also implements a tracking and improvement system in

its package design and product development system.

Specifications of ECS environmentally friendly package:

Heavy metals may not be added to package materials: heavy metal content for

lead, cadmium, mercury and hexavalent chromium must not exceed 100ppm total.

Easy disassembly non-reused parts without using a tool.

Package materials need to comply with renewable material requirements and

manufacturers must define the composition of renewable materials by weight or

volume.

Plastics used in package material must be identifiable and over 90% of package

material needs to be recycled easily.

ECS green package design:

1. Lightweight

2. Material Reduction

3. Material Purification

4. Package Material Simplification

5. Recyclability

6. Reusability

7. Nontoxic material

8. Strength package

Packaging before improvements

Packaging after improvements

(Volume Decrease)


40

Above example shows package reduction in package materials from 23,434 cm3 to

14,550 cm3 or a volume reduction of 38%. This reduced the amount of package

material as well as transportation cost.

Package material weight reduction results:

Model 7"-E07 9"-E09 10"-G10 12"-S21 14"-U41 15"-U5X 15"-L55 17"-L75

Original

Weight

540.64 578.79 610.98 816.03 986.23 972.58 957.88 1324.63

Final

Weight

351.58 389.73 464.66 520.47 637.86 600.11 581.36 889.31

Weight

Reduction

35% 33% 24% 36% 35% 38% 39% 33%


41

Low Energy Consumption

ECS also considers environmental characteristics associated with the product and

searches for alternative technologies to improve the overall environmental performance of

the product. The goal is to develop better environmentally-friendly products of

low-energy complies with the relevant requirements defined by Energy Star 5.0, EuP Lot 6,

Lot 7 and Lot 3. The figure below shows an affirmation table for ECS assessment of

energy use of its products. ECS fully complies with EU energy consumption regulations.

Energy Assessment Affirmation Form

Product life cycle consists of raw materials mining, manufacturing, packaging,

transportation, usage, maintenance and disposal phase. The key items are:

－ Materials, energy, resources and consumption information

－ Emissions as air, water and soil pollution

－ Noise, vibration, radiation and electromagnetic effects.

－ Waste disposal

－ Consideration of the possibility that the product may be recycled in accordance

with the EU 2002/96/EC (WEEE) Directive

The above are environmental considerations. The parameters below can be used for a

more detailed evaluation:

－ Product volume and weight

－ Use of recycling materials

－ Overall energy consumption during product lifecycle.

－ Prevention of product delivering hazardous substance to the environment

according to EU 2002/95/EC (RoHS) Directive

－ Design for easy recovery that includes: amount of materials and components

used, use of standard components, degradability time assessment, special tools

required for degradation, material and component markings (e.g.: plastic


42

package with ISO marking), use of recyclable materials, hazardous substances

or easily-separated pieces and other design proposals.

－ Components that can’t be recycled.

－ Waste production estimates (including hazardous waste)

－ Air pollutant emissions (e.g.: ozone-depleting substances, acidic substances,

heavy metals, suspended particles…etc.)

－ Water pollutant emissions (e.g.: heavy metals, materials that have a harmful

effect on oxygen levels in water)

Less Plastic

ECS implements a “Less Plastic” policy for its products to reducing petrochemical damage

to resources caused by product use. In turn this reduces demand for fossil fuels and

restricts the addition of BR (brominated) flame retardants from plastic use. Additionally,

the policy prohibits the use of PVC (Polyvinyl Chloride). ECS advocated “Less Plastic”

policy as follows: Halogen-free parts and BR and CL management in compliance with

GreenPeace requirements for BFR and PVC, and, international trends that require less

plastic.

BFR (Brominated Flame Retardant-free)

According to requirements by the GreenPeace organization, brominated flame

retardants (BFR) must be <1000ppm. Currently, ECS Desktop and all product

cases fulfill this requirement.

Request that factories comply with these regulations and provide total bromine (Br)

test reports.

PVC (Polyvinyl Chloride)

According to requirements by the GreenPeace organization, PVC must be

<1000ppm.。

After removal of production technology and price considerations, purchase only

PVC –free components.

ECS began using Halogen-free materials since September 17, 2008.

ECS requirements for plastic parts are as follows:

Plastic parts exceeding 100g should be labeled according to ISO 11469

Plastic parts exceeding 100g cannot use unrecoverable materials in coating or

paint.

Product casing must be able to be removed by one person by ordinary tools.

Plastic parts exceeding 25g may not contain PVC.


43

Plastic parts exceeding 25g may not contain over 0.1% of flame retardants

(67/58/EEC Directive standard of R45, R46, R50, R51, R60, R61)

Hexavalent chromium content must not exceed 500ppm but the use of renewable

materials is an exception.

Plastic parts must be in compliance with relevant provisions of ISO labels (ISO

11469, ISO 10431-1, -2, -3, -4)

Ensure that less than two plastic types are used.


44

5.8 Environment Management

Environmental responsibility is minimizing the environmental impact and depletion of

natural resources, while protecting public health and safety throughout the entire

production process. ECS has always been concerned with environmental duties, solid

implementation of environmental responsibility and a desire to improve the environment.

After factories adopted the ISO 14001 environmental management system certification, a

complete environment management system was established. Every year, exhaust,

waste water, material waste and other emissions have been regularly monitored. ECS

continues green content and management improvement.

Environment Management Organization

ISO 14001 Certificate


45

5.9 Energy-Saving and Waste Reduction

Power management ECS has organized a power-saving implement team. It is meant to provide a system to implement, summarize, evaluate and appraise energy efficiency projects. It requires full participation, individual responsibility and guidance from electrical and mechanical experts in the factories. ECS energy-saving solutions:

1. Electrical Equipment: Complete management of electric equipment, power management, control air conditioning, compressed air, ventilation, lighting, and power consumption during holidays. Review the need and soundness for starting electrical equipment and turn off or remove unnecessary electrical equipment.

2. Define Responsibility: Define responsibilities among electricity managers for

regions, implement energy-saving measures and management evaluation procedures. Collect data, analysis, comparative management procedures, implement energy-saving tasks and review.

3. Electrical equipment enhancement: Evaluate internal electrical facilities of energy-saving periodically. E.g.: Energy-saving with frequency conversion, T5 lamp lighting replacement, air conditioning condensers, and the use of other clean technologies.

4. Shop floor energy-efficiency: Energy-saving product design, production simplification, production quality improvement and re-work reduction will significantly reduce total power consumption.

5. Equipment maintenance and operating efficiency improvement: Implement electrical equipment maintenance that ensures equipment is in good condition, has a low failure rate, reduces inefficient energy loss and improves energy-saving efficiency.

6. Office power saving: Encourage employees to turn off computers when temporarily not in use.


46

ECS Power Consumption Improvement

Unit:K-KWH

Location 2007 2008 2009

Taipei HQ 4,955 4,448 5,256


Suzhou Factory 10,604 12,872 11,783

Total 72,869 64,282 51,134


47

Water Management

Water-saving solutions:

1. Internal education about water saving: highlight “Save water, turn off the switch” signs

with water-saving slogans in areas of water use. Carry out regular water-saving education to help employee understand the importance of water-saving.

2. Narrow hot water offering: offer hot water within a limited time in staff dormitories to

ensure employee use while preventing water-waste.

3. Regular and random inspection: check water, water equipment and facilities to prevent waste of water.

4. Regular maintenance of water storage facilities to ensure normal operation.

5. Water usage monitoring and review report in factory.

6. A recycled rain water irrigation system to utilize water brought by weather. 7. Save water in sink and bathroom to reduce water consumption.

Unit: Ton

Location 2007 2008 2009

Taipei HQ 26,593 28,875 25,463


Suzhou Factory 171,548 103,124 90,272

Total 736,727 584,289 556,717

Water Management


48

Waste Management

Maximizing resource utilization, ECS processes waste resource recovery and conversion into a useful resource. ECS Complies with national standards for waste management, and maintain regular examinations of disposal of dangerous waste. Waste Reduction Solution:

1. Separate waste and resource recycling – Set up recycling bins on each floor.

2. Do not use disposable tableware—“General Garbage,” “Recyclable,” and “Kitchen”

should be collected separately. Do not use disposable items such as: bowls, plates,

cups, chopsticks and spoons in the restaurant.

3. Reduce paper waste – Promote the practice of writing on both sides of a sheet of paper.

Reduce paper printing.

4. Use recycled products: such as paper towels.

Wastewater:

It generates wastewater when circuit boards are produced. ECS water treatment plants

set up in factory districts for wastewater management and recovery process. Water

recovery for the past 3 years is in the following table.

Unit : m3/year

Item 2007 2008 2009

Total Amount of Industrial Wastewater（m3） 594,600 610,100 768,000

Total Emission of Industrial Wastewater Discharge（m3） 514,600 366,100 460,800

Total Recovery of Industrial Wastewater（m3） 80,000 244,000 307,200

In 2009, ECS produced 768,000m 3 of wastewater a year. Total discharged water was

460,800m 3 /year. The total amount of recovered water was 307,200m 3 /year. ECS

wastewater treatment ability is 3,000/T/D. Discharged wastewater complies with

national Level 2 standards (DB44/26-2001 Second Version.) Wastewater management

includes: General waste, organic waste, copper-containing waste, highly-concentrated

waste.


49

Water quality test results (average)

Test Items 2007 2008 2009 Industrial Discharge

Standards Unit

Hydrogen Ion Concentration（pH） 7.45 7.30 7.32 6-9 –

Chemical Oxygen Demand（COD） 30 45 46 ＜110 mg/L

Total Copper（Cu） 0.001 0.089 0.072 ＜1 mg/L

Total Nickel（Ni） 0.002 0.002 0.002 ＜1 mg/L

The water quality test results show that ECS fully complies with national water discharge

Level 2 standards.

Water Recovery Equipment

Water-saving system and efficiency

ECS total factory water consumption is 1,062,000 m3 /year, 70% of which is used in the

production process. Therefore, a wastewater reuse system has been installed and

water-saving improvements have been made on production equipment and methods.

ECS promoted water recycling and economics development and gained the recognition

from Shengzeng city government In 2006 and 2007.


50

Green Touch, Good Life ECS commits to protect the Earth by reducing the global environmental loading as the

priority of her corporate sustainable strategy. Confronting more and more global

environmental impacts; climate change, natural resources depletion and the crisis of

ecological imbalance, ECS devotes the Green Solutions for the Earth sustainable

development without compromising customer satisfaction. ECS expects bringing people

with more Green Touch for a Good Life.

Nowadays, ECS integrates Green concept in her daily operation. From the

headquarters on Taiwan, China factories to worldwide branches, ECS practices energy

saving, water recycling, Green data center, planting and so on to reduce greenhouse gas

emission for mitigating the climate change. With continuous efforts to conduct business in

a sustainable way, ECS recognizes that we are dependent on the Earth and strive to

improve the quality of life for people everywhere!

Documents

CORPORATE SOCIAL RESPONSIBILITY REPORT ELITEGROUP COMPUTER ... · (2009 Elitegroup Computer Systems Corporate Social Responsibility Report) Contact of this report: Green Assurance