The reinforcement and maximization of impacts from corporate sustainable development depend on inter-connections and cooperation throughout the entire value chain.

GIGABYTE reinforces the engagement and communication with our supply chain through a variety of channels such as evaluations, awards, education and training, and alliances. We strive to build a partnership beyond trade relations and realize the core philosophy of “Reduction. Sharing. Love the Earth” hand in hand.

4-Step Approach to Supply Chain Engagement

The first step in supply chain engagement is the supply chain management strategy and risk management. The three following steps of “Supplier Sustainability Award”, “Reduction. Sharing. Love the Earth Alliance” and “Supplier Conference” will help us refine the management and promotion of supply chain sustainability.

Step 1: Supply Chain Policy and Risk Management

Please refer to Supply Chain Management.

Step 2: Supplier Sustainability Award

GIGABYTEʼs Supplier Sustainability Evaluation process starts with suppliers self-evaluating their implementation performance in 6 major aspects: CSR management, CSR protection, human rights of labor, fair trade, supplier responsibility, and social/local contribution. Afterward, the Supplier Evaluation Team from the Sustainable Development Office conducts fair selection based on 4 major aspects: completeness, rationality, the level of cognition, and the level of attention. The suppliers with better scores would be publicly awarded the Excellent Partner Award at the supplierʼs year-end party. Besides, the attendance rate of the top 100 suppliers also shows the extent of close collaboration between GIGABYTE and the supply chain partners. We will continue to increase the ratio in the future to make suppliers have more incentives in carrying out sustainability and therefore construct a sustainable supply chain.

0%
of GIGABYTEʼs purchasing expenditure was from the suppliers participating in the Supplier Sustainability Evaluation in 2023.

In addition to the awards, we also use purchasing to encourage CSR fulfillment by suppliers. We will continue to increase our purchasing ratio in the future to give suppliers even more incentive to embrace sustainability and construct a self-sustaining supply chain.

The Themes of End-of-year Suppler Party and Supplier Sustainability Award Ceremony over the Years

2017 Martial Art General Assembly

The event spread GIGABYTEʼs 4 Sustainability Principles (civic duty, empathy, vision, and perseverance) and major environmental management objectives in the future (full control of the use of Phthalates)to show our high emphasis on sustainability-related issues.

2018 Jungle Game

The event combined VR, drone, and online interactive games with the guest to let the suppliers feel our ambition of innovation and ground-breaking. Our philosophy and conducts of carbon, waste, and water reduction and plant for the planet are the main topics of the whole adventure event. We hope to cooperate and respond with other partners together, and with the principle of sustainability, innovation, and quality, we can create the visions of sustainable development for the value chain, marching toward the future of the economy, society, and environment thriving together.

2019 Secret Gathering at Ace City

A secret invitation from Ace City invited the leaders of all countries in the world of fairy tales to come together to help solve the issues facing Ace City. At the meeting, each hero could collect three magical treasures: the Sustainability Rose, the Superior Quality Candle, the Collaboration and Innovation Scepter, with which they could help solve Ace Cityʼs issues with sustainable development, environmental conservation, and social responsibility.

2020 Reduction, Sharing, Love the Earth: G20 Sustainability Summit

GIGABYTE invited our supplier partners to attend the G20 Sustainability Summit where formal minimalism rather than ostentation was the order of the day. Attendees were also asked to support the GIGABYTE Reduction, Sharing, Love the Earth Alliance. The pre-event games, gifts, and performances were all closely integrated with social engagement and sustainable development. The colored rings representing SDGs set into the trophies made from recycled motherboards represented GIGABYTEʼs determination to lead our partners in embracing a circular economy and sustainable future!

2021 Intelligent 5G: The Force Awakens

The Planet was assailed by the dark forces of environmental pollution and social unrest. GIGABYTE called upon Jedi knights everywhere to use the latest GIGABYTEʼs smart products and the 3 Forces (Sustainability, Innovation, and Cooperation) to save the planet! Although the 2020 supplier end-of-year banquet was canceled due to COVID-19, trophies were still delivered to awarded suppliers to show our appreciation for their support and assistance over the year. We also looked forward to furthering cooperation in the future on realizing the vision of “Reduction. Sharing. Love the Earth”. May the Force be always with us!

2022 Return to Glory - Zero Carbon Relay

The theme of “Return to Glory – Zero Carbon Relay” was chosen for 2021 event. Zero Carbon represented GIGABYTEʼs commitment to “embrace the global trend on carbon reduction” while the relay reflected the philosophy of “sustainability requires teamwork.” When these two values come together, it means a return to glory for the enterprise, environment, and human society! The event was ultimately canceled due to COVID-19, but there is no stopping us from this global battle for zero carbon survival. We will continue advancing towards sustainability with our value chain partners.

2023 The Era of Sustainability –Pioneering Technology Leads to the Crown

No enterprise can break away from the waterway toward sustainability. To plow the waves and be crowned king on this great waterway, enterprises must inject new ideas of sustainability and circular economy that drive business transformation.

It has been 2 years since the last GIGABYTE End-of-Year Supplier Party. This year, GIGABYTE hopes to raise cohesion and recognition of the “sustainable supply chain” by commending outstanding suppliers and ESG games. Appreciation is also given to all the partners for walking side-by-side with GIGABYTE and for mutual support and cooperation on the challenging road in the past few years.

2024 Taking off with GIGABYTE on Flight Green24 towards Net Zero Future

Just like the aviation industry recovered after the epidemic, which led to the sky soaring and prosperous again, the supply chain has returned to a growing track in 2023 after going through various market uncertainties.

The concept of “Sustainability” is blooming in this industry today. GIGABYTE is already experiencing increasing requirements on sustainability from first-line end product users as well as driving forces from responsible investment by global investors. As a result, the theme of the 2024 Party symbolizes GIGABYTE as a “caption”, as it works together with suppliers (passengers) to achieve green production, energy savings, and efficiency enhancements. A stable and sustainable supply chain depends on joint partnerships facing and tackling challenges and opportunities hand in hand. At this event, GIGABYTE also awarded the outstanding suppliers of this year.

Step 3: Reduction. Sharing. Love the Earth Alliance

GIGABYTE launched the “333 Reduction Plan” in 2016 and set a target of reducing carbon emissions, water use, and waste by 3% every year. We also invested in tree planting and afforestation to conserve the biodiversity of the earth. At the same time, we invited all of our suppliers to join the “Reduction. Sharing. Love the Earth Alliance” and reach the “333 Reduction” targets together with GIGABYTE. We also expect that the suppliers with significant reduction performance could share their experiences with others to stimulate peer learning and achieve general reductions across the entire supply chain.

Status of “Reduction. Sharing. Love the Earth Alliance” Reduction Performance

After the Alliance was established, GIGABYTE started to investigate the efforts to reduce carbon emissions, water use, and waste by each Alliance member in 2018. Every effort made was to practice the Allianceʼs core value of reduction. Furthermore, with an outline of the overall reduction trends, we can then develop a more practical strategy for the future. In 2023, we tracked the reduction statistics from the previous year (2022) of 56 companies, including partner advocates and GIGABYTE itself, and the number of companies that met the 3% targets in 2022 compared to previous years is as follows.

Explanation of Reduction Performance Status

  • The statistics showed that approximately 60% of investigated companies met the carbon reduction target, and nearly 50% met the water and waste reduction targets. The measures to reach targets included establishing environment policies, setting concrete targets and timetable for reduction measures, and implementing innovative sustainability-related programs. To be more specific, emission reduction actions taken by most of the suppliers are such as using renewable energy, carrying out sustainable procurement, monitoring the energy efficiency of equipment, and replacing old and energy-consuming facilities; the water use reduction actions involve water recycling and intelligent water monitoring; the waste reductions are realized by reducing packaging, managing manufacturing processes through a product lifecycleʼs perspective, adjusting parameters to reduce solvent use, etc. In addition, many suppliers actively promote sustainability concepts as part of their corporate DNA and hope that every employee will serve as a guardian of sustainability risks.

  • The suppliers who failed to meet the targets all saw an increase of more than 3% in their overall carbon emissions, water usage, and waste. GIGABYTE will continue strengthening the Allianceʼs reduction performance by sharing good practices and appropriate methodologies through supplier conferences, education and training, and digital management tools.

Step 4: Supplier Conference and Sustainability Engagement Practice

GIGABYTE has held Supplier Conferences since 2009 which invites multiple pioneers in sustainability to share their experiences as well as ESG tendency and practical measures with our suppliers, CSR-related personnel, and manager-level employees. We will continue to ramp up our marketing efforts to establish sustainability know-how among our supplier partners.

Objectives of Supplier Conference in Recent Years

Aug 23, 2018

Agenda

  • Innovation, sustainability, and value
  • The international trend of sustainable development
  • Material Flow Cost Accounting (MFCA)
  • Introduction and promotion of intelligent manufacturing
Conference Goal

The first part of conference conveys the GIGABYTEʼs sustainability philosophy as well as the global tendency to our suppliers for the purpose of strengthening their awareness of supply chain management. The second part shifts the focuses to practical cases. By introducing MFAC and intelligent manufacturing, the suppliers are expected to understand some commonly-used and effective methods that can help realize sustainability in daily manufacturing processes.

Sep 19, 2019

Agenda

  • Sustainability questionnaire and RBA communication
  • Intelligent supply chain and smart factory
Conference Goal

In response to GIGABYTEʼs emphasis on a sustainable supply chain, we expect suppliers to have a more comprehensive understanding of GIGABYTEʼs sustainability assessment standards and RBA regulations, supplemented by digital transformation resources and trend introductions. So that supplier partners can re-examine their management approaches, production processes, product design, and other operational processes, with a consideration of sustainability thinking and potential risk identification.

Oct 23, 2019

Agenda

  • Sharing. Love the Earth Alliance
  • Life cycle assessment and carbon footprint
  • Experience sharing of sustainable development and corporate social responsibility promotion by Delta Electronics
Conference Goal

Enable the participants to understand the scope and limitations of the current product life cycle and carbon footprint assessment, and align the current myths about environmentally friendly products. Also, provide a guide to the supplier partners to establish correct reduction policies through Delta Electronics’ benchmark sharing, and encourage them to respond to the Reduction. Sharing. Love the Earth Alliance.

Sep 24, 2020

Agenda

  • Sharing of “Reduction. Sharing. Love the Earth” Alliance
  • Circular economy and green financing under the COVID-19 pandemic
  • Reverse-logistics planning under the tendency of circular economy
Conference Goal

The growing acceptance of corporate sustainability concepts in Taiwan means we now hope that supply chain partners can combine sustainability with their operations to create an innovative business model that is more competitive as well as socially and environmentally inclusive. The theme “Circular Economy” was chosen for the conference. In addition to inviting Lih-Chyi Wen from the Center for Green Economy at Chung-Hua Institution for Economic Research to introduce the five major trends and three main challenges in circular economy, we also invited the Bestyield International to share its hands-on experience with the introduction of reverse logistics services.

Sep 16, 2021

Agenda

  • Future of Net Zero
  • Corporate Sustainability Strategy
Conference Goal

“Net zero emissions” is already a global hot issue. GIGABYTE knows that businesses must take carbon management seriously in order to rise above the fray in a very competitive market. During the 2021 Supplier Conference, the Sustainable Development Office introduced to suppliers with the voluntary inventory of carbon emissions (ISO 14064-1: 2018) and shared the concept of risk management as well as the strategy and outcomes for strengthening the resilience of sustainable supply chains. We hope this will encourage more supplier partners to join us in forging a sustainable supply chain together. GIGABYTE will continue to ramp up our communication efforts to establish sustainability know-how at of our suppliers.

Sep 15, 2022

Agenda

  • Create a Sustainable Zero-Carbon Value Chain
  • ESG Management and Sustainability Report Practice
Conference Goal

Carbon reduction strategy and ESG have become prominent issues. At the conference, GIGABYTE shared its sustainable operation strategies and promotion of a zero-carbon value chain under increasing pressure from customers and the international trend. Also, an external expert was invited to explain the climate challenges and risks faced by enterprises as well as the opportunities they bring, as well as how benchmark companies effectively disclose ESG performance through their sustainability reports in order to gain trust from investors.

Sep 7, 2023

Agenda

  • Construct Intelligent Carbon Management and Strengthen Resilient Supply Chain
  • Towards a New Era of Net-Zero: An Analysis of Supply Chain Management
Conference Goal

In response to various emerging climate-related regulations and standards driven by the global wave of carbon neutrality such as the foundation of the Taiwan Carbon Exchange, GIGABYTE set “carbon management along the supply chain” as the topic of the 2023 conference and invited lecturers and experts in the carbon intelligence discipline to share net-zero trends, regulations, and response strategies.

The Chief Operating Officer of GIGABYTE gave an opening address. He indicated that GIGABYTE will pay more attention to supplier evaluation, from encouraging sustainability actions to gradually putting stricter procurement standards into efforts. As an original brand manufacturer, GIGABYTE strives to lead suppliers to take more actions in carbon reduction.

Sep 19, 2024

Agenda

  • Keep Away from Carbon Anxiety! Responding Strategy to Corporate Transition Risks
  • Introduction of Carbon Intelligence Service Partners
  • Net Zero and Corporate Governance
Conference Goal

In response to suppliers’ “carbon anxiety,” GIGBAYTE’s Chief Sustainability Officer Rolance Chu shared practical examples of emission reductions implemented by GIGABYTE. He mentioned that companies implementing carbon management will benefit from regulatory compliance, reduced operational costs, enhanced market competitiveness, and sustainable development.

In addition, Prof. Kuei-Tien Chou from the NTU Risk Society and Policy Research Center was invited as a speaker. In his speech, he delved into the development of net zero policies in Taiwan, including the Pathway to Net-Zero Emissions in 2050, the Amendment to the Climate Change Response Act, and the Carbon Fee Levy. He reminded suppliers that emission reductions are already urgent. Companies should take immediate action to address market challenges.

The Conference focused on the urgency of cutting emissions and sustainable development, demonstrating GIGBAYTE’s commitment to environmental protection and building a sustainable value chain.

Supplier Sustainability Engagement and Education and Training

Intelligent Circular and Low-Carbon Supply Chain Management Project

GIGABYTEʼs upstream supply chain has a carbon footprint approximately 50 times that of its operations, according to the latest greenhouse gas inventory. With the global net-zero tendency and carbon tariff mechanism in place, GIGABYTE and its suppliers need to cooperate and share environmental data, material selection, and carbon reduction technology in order to accelerate the transition to a low-carbon economy and reduce trading costs. The “Intelligent Circular and Low-Carbon Supply Chain Management Project” was launched by GIGABYTE in 2023 focusing on four key axes: build a low-carbon production environment, develop high-value and low-carbon production technology, introduce low-carbon circulation technology, and build a sustainable supply carbon management platform. Suppliers who provide emission-intensive components were chosen for mentoring on GHG inventory, target setting, and reduction strategy. Through its large company resources, GIGABYTE hopes to strengthen the carbon management capabilities of small suppliers.

 

2023 Consultation on Emission Hot Spot Assessments and Energy Saving Measures

136 participants from 10 suppliers

Following the project described above, GIGABYTE selected 10 suppliers for on-site interviews through “Supplier Emission Hotspot Assessment and Energy Saving and Carbon Reduction Counseling”. We reviewed the electricity consumption of the supplier’s factories and interviewed and counseled the cross-unit supervisors to clarify the emission hotspots and make suggestions for improvement. In general, manufacturers receiving counseling aim to reduce carbon emissions by 2% to 3%.

 

Jun 23 & Jul 21, 2022, Greenhouse Gas Inventory Training

86 partners from 47 companies participated

GIGABYTE endeavors to lead suppliers and partners on the road to sustainable development. In 2022, 2 sessions of greenhouse gas inventory training were held with key suppliers as the core training target. The course provided common-use tools, examples, and helpful resources for greenhouse gas inventory. GIGABYTE plans to progressively provide training in product carbon footprint inventory and information regarding material emission databases, aiming to grow together with suppliers and reach the target of the 333 Reduction Plan. Ultimately, this will contribute to integrating with operations and building a low-carbon and resilient supply chain.