2011 Acer Corporate Responsibility Report

2011 Acer Corporate Responsibility Report

2011 Acer Corporate

Responsibility Report

2011 Acer Corporate Responsibility Report

1

1

G

2011 Acer Corporate Responsibility Report

Content

About This Report

High Level Statement

Message from the Chairman & CEO

Message from the Corporate

President

Report Summary

2011 Goals and Achievements

2012 Goals and Commitments

2011 Acer Numbers at a Glance

2

3

3

4

6

7

5

5

G

Corporate Governance

History and Development

Market Recognition

Marketing Communication

Corporate Governance

Corporate Responsibility Policy and

Strategy

Corporate Responsibility

Governance

C

Stakeholder Engagement

Public Policy Participation

Support for New Issues

Other Initiatives and Participation

17

19

20

21

22

13

15

15

15

16

16

E

Environmental and Energy

Management

Comprehensive Environment,

Health, and Safety Management

Our Operations and the Environment

23

24

24

Product Design that Incorporates

Environmental Considerations

Energy and Climate Change

Response

S Responsible Supply Chain

Supplier Social and Environmental

Management

On-site Audit

Follow-up and Response

Reponse to Conflict Minerals

California Transparency in Supply

Chains Act

Supplier Greenhouse Gas

Management

S

Employee Welfare and

Advancement

Staff Structure

Competitive Compensation

Employee Relations

Continuous Learning and Growth

40

42

44

41

41

27

31

35

37

38

39

34

35

39

Safe and Healthy Working

Environment

Standards of Business Conduct

S

S

Customer Service

Acer Group Service Model

Acer’s Customer Service System

(CSS)

Customer Satisfaction Survey

Product Alerts and Recalls

Customer Privacy

Community Outreach

Education

Acer Volunteers

Disaster Relief

Environmental Conservation

GRI Content Index

Assurance Statement

46

47

47

54

55

56

57

58

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51

48

49

49

44

45

E S

About This Report

Acer began issuing corporate social responsibility (CSR) reports on a regular basis each year in

2008, disclosing information on the three aspects of corporate governance, society, and environment to give stakeholders in all sectors an understanding of Acer’s determination to carry out sustainable development and social responsibility, and our performance in carrying out that determination. The previous report was issued in August 2011. The contents and framework of this report were compiled in accordance with the GRI G3.1 guideline that was announced in 2011 by the Global Report

Initiative (GRI); the disclosures in this report have been validated by SGS and reach Application

Level B+, and its final page contains its framework content and a cross-reference table of GRI indicators. The Chinese and English versions of the report were released simultaneously on the Acer

Group’s “ Sustainable Acer ” website.

Boundaries and Scope of the Report

The information in this Report is based primarily on data for 2011 (Jan. 1-Dec. 31, 2011), with organizational boundaries established in accordance with the principles of consolidated financial reporting. The scope of the Report encompasses Group subsidiaries but not reinvested enterprises, and some performance information is not included. Any adjustment of the data will be separately explained in the text of the Report.

For more detailed financial information, please refer to the Acer Group’s “ Investor Relations ” web page.

Contact us:

If you have any questions or suggestions regarding this 2011 Acer

CSR Report, please contact the Acer Corporate Sustainability

Office at [email protected]

3 High Level Statement

2011 Acer Corporate Responsibility Report

Message from the Chairman & CEO

While the global economy faced tremendous challenges in 2011, Acer underwent personnel reshuffle and organizational change. We proceeded from corporate governance which includes enhancing the management system, and promoting independent and transparent management. Acer took the courage reformation. The organizational change was aimed at overcoming the barriers between departments, and eliminating the making of decisions based on the department’s individual interest that may cause a negative impact on global governance. For Acer to realize its core philosophies and business goals, the company operations need to be more sustainable and more competitive.

The ICT industry has entered the era of 4C convergence (Computer,

Communication, Consumer electronics and Content services). Facing the challenges of the global carbon reduction and scarcity of natural resources, product design trends have shifted. The industry that used to focus on supercomputing power, high-speed graphics processing, and large memory storage capacity, has now switched to emphasizing on “mobile computing” capability, ultra-thin, energy-saving and high efficiency notebooks and tablets, as well as cloud computing. We believe that the new trend is favorable to the promotion of sustainable development, and ICT technology on the global carbon reduction will provide a more significant contribution than in the past.

As a leading ICT brand, the implications of corporate social responsibility to Acer means promoting energy efficiency, low carbon, fewer resource consumption and responsible management of chemicals. After all the efforts we made in 2011, Acer will strive to create more energy-efficient products and services to the worldwide market in order to make a concrete contribution to the Green Revolution for ICT. We believe this is an opportunity for Acer, as well as a new hope for world sustainability.

J.T. Wang,

Chairman & CEO

2011 Acer Corporate Responsibility Report

Message from the Corporate President

Acer is a pragmatic enterprise; it was so in the past, it is so now, and it will remain so in the future. We will not, nor should we, ever forget our commitment to our stakeholders.

Acer’s actions for sustainability continuously keep focus on five major themes climate change, green products, supply chain management, reports, and product recycling. Although there were some changes in the operating team in 2011, Acer not only did not deviate from its path of sustainable development and fulfillment of CSR, but made ever-greater breakthrough progress under our faith in reform.

In 2011, Acer introduced the ultra-thin Aspire S3 Ultrabook™, providing rapid boot-up connection using “Acer Green Instant On” energy-saving technology, and new-generation ultralight long-lasting lithium batteries. With sales of these notebooks expected to reach 5 million units, the resultant power savings will equate in carbon removal terms to 1.45 million trees. Additionally, each Aspire

S3 notebook cuts the use of metal by 32.5 grams, which is equivalent to a reduction of 68.81 kilograms of carbon dioxide emissions. With the expected sale of 5 million units, this is equivalent to the carbon removal effect of 28.67 million trees. Also, the magnesium-aluminum alloy case of the Aspire S3 is

100% recyclable.

As climate change continues to be a growing problem, Acer has chosen to respond not only through product innovation, but also by setting long-term carbon-reduction targets. In 2011, we began acquiring green power and renewable energy certification in Italy and Germany.

In the field of digital inclusion, Acer followed up its cooperation with the

European School net netbook project of the first half of 2010, in which six countries (Italy, France, Spain, England, Germany, and Turkey) used low-cost

Acer E100 netbooks in a pre-pilot project, by carrying out a school-year pilot project running from September 2010 to June 2011. Eight thousand students and teachers from these European countries participated in this stage of the project. In 2012, we will apply the use of tablets to this project.

In 2011 we carried out the social and environmental responsibility onsite audit of 40 of our manufacturer suppliers, an increase of 150% over 2010. Acer’s engagement with its stakeholders has not ended with our organizational reengineering. Indeed, it is being constantly deepened and broadened, as it has become an indispensable element and value in our promotion of strategic

CSR. We will keep sharing, learning and engaging with stakeholders, and gain momentum for innovation in the process.

Jim Wong

Corporate President

High Level Statement

4

2011 Goals and Achievements

2011 Acer Corporate Responsibility Report

Corporate

Governance and

Stakeholder

Engagement

Environment and

Energy Management

Responsible

Supply Chain

2011 Goals and Commitments

Continued holding of Acer CSR Forum and communication with international stakeholders.

Development of an internal corporate responsibility sharing platform.

Establishment of information platform for supply chain SER management.

Achievement of organizational reform of global CR governance for transferring existing responsive actions to 2011-2014 strategic actions.

Improvement of HSF-related trial runs and mass-production on every production line, including those for notebook computers, tablet PCs, desktops, monitors, and smart handheld devices.

Continued participation in international legislative discussions on halogen-free manufacturing.

Continued participation in CDP Supply Chain Program and improvement of questionnaire feedback quality.

Status

Participation in domestic and international discussions on and formulation of carbon footprint standards.

Continued promotion of energy conservation programs in workplace.

Boosting of percentage of medium- and high-risk suppliers audited from 16% to 50%.

Increase of percentage of suppliers filling out SAQs to 100%.

Achievements and Details

The timing of the Forum was switched from the fourth quarter to the first quarter beginning in 2011 to coordinate with Acer’s global CSR governance mechanism.

In development; Completion expected in second quarter of 2012.

Being done according to the timetable for development of the EICC On supply chain social responsibility platform; suppliers expected to be asked to join the platform in fourth quarter of 2012.

Following Acer’s major personnel reorganization in 2011, new management team adjusted company’s operating strategy to grasp new opportunities. Corporate governance has also been strengthened, and a global CSR committee has been set up under executive committee.

HSF machines are being added to each production line, and ratio of HSF machines on all lines is growing. On notebook lines, for example, ratio has increased from 33% to 67%, and on smart handheld device lines it has risen from 0% to 14%.

Acer participated in discussions on legislation to revise EU’s RoHS, which was completed in July 2011.

We will continue watching related international regulations.

Acer continued asking major suppliers to join Carbon Disclosure Project (CDP) in 2011; 74 suppliers responded to questionnaire, for a response rate of 97%.

Acer participated in WRI/WBCSD global pilot project for product and value-chain carbon footprint standards, entering models of netbook, display, and projector, and also joined Environmental Protection Administration’s “Discover the Carbon Footprint Label” activity.

When renovating our offices we choose green materials and energy-saving lighting, and install automatic light shutoff systems. We also promote energy conservation and carbon reduction in public areas; at Acer’s Taiwan headquarters, for example, we have reduced electricity usage by 411,000 kilowatt-hours and CO2 emissions by 251.6 tons.

Energy-saving measures undertaken at Aspire Park include changing of fire-safety lighting, heat pump water heating systems, assembly hall lighting, and chilled-water variable frequency air conditioning systems, and installation of digital electric meters for more effective management of energy use. These measures save about 379,085 kilowatt-hours of electricity and reduce CO2 emissions by about 395.2 metric tons per year. In all, Acer Taiwan cut greenhouse gas emissions by 3.2% in 2011.

SER on-site inspections of 40 suppliers were carried out in 2011.

Percentage of suppliers filling out SAQs reached 80%.

5 Report Summary

2011 Goals and Achievements

2011 Acer Corporate Responsibility Report

Responsible

Supply Chain

Employee Welfare and Advancement

Customer Service

Community

Involvement

2011 Goals and Commitments

Provision of suppliers with training and lectures

• Greenhouse gases

• CDP

• Conflict minerals

• Global trends in SER

Organizing of supply-chain SER meetings.

Requirement for all ODM suppliers to obtain OHSAS 18001 accreditation by 2011 and OHSAS 18001 accreditation by 2012.

Continued implementation of Acer Group Standards of Business

Conduct.

Formulation and implementation of a global training and development program, including online training courses.

Conducting of environmental safety and health training.

Implementation of a performance evaluation system.

Continued consolidation of the Acer Global Customer Service

System (CSS).

Promotion of Acer Volunteer Team services.

Development of community-centric digital opportunity projects.

Status

Achievements and Details

Before sending out CDP Supply Chain Program questionnaire, we held a supplier questionnaire capacity-building workshop to help suppliers better understand the program and Acer’s demands in regard to energy and climate change, and thus enhance their professional ability and their ability to complete the questionnaire.

We cooperated with BCSD and TCSF in organizing lectures on Corporate Ecosystem Valuation and Global Water Tool trends, introducing WBCSD’s innovative sustainable management tools to

Taiwanese enterprises and Acer’s suppliers.

In line with Acer’s global CSR governance mechanism, supply-chain SER meetings will be merged with first-quarter 2012 CSR Forum.

All ODM suppliers have introduced OHSAS 18001 occupational safety and health management system.

Standards of Business Conduct have been incorporated into the performance management system.

A global personnel development system has been designed and is being implemented by region as needed.

573 new employees were given three hours of training; training will be extended to all employees in

2012.

1. Performance management systems have been set up in all regions, and the global personnel databank will be integrated in 2012~2013.

2. The global personnel management policy has been updated in such areas as limits of authority and target management.

Establishment of this system was initiated in 2010, and it is now in use in Europe, the Middle East, Africa, and the Americas.

The Acer Volunteer Team has provided such volunteer services as environmental protection and concern for disadvantaged groups, and holds regular donations of funds and blood.

The following digital opportunity projects were initiated in 2011:

• Cambodian Digital Opportunity Center

• Three Philippine Digital Opportunity Centers

• Remote Chinese School Digital Opportunity Project

Complete ◎ Partially complete ○ Not complete

Report Summary 6

2012 Goals and Commitments

2011 Acer Corporate Responsibility Report

Environment

Society

Governance

2012 Goals and Commitments

Completion of third-party verification for organizational-type greenhouse gases.

Enhancement of the ratio of green products in different product lines.

Banning of such chemical substances as DBP, DEHP, BBP, DIBP from use in new products.

Promotion of information and communication technologies (ICT) green innovation to achieve a 15% reduction in the 2% of carbon emissions caused by ICT.

Holding of the Acer CSR Forum.

Increasing supplier environment and social investigations by at least 150% over 2011.

Integration of the global manpower databank, management application systems, and personnel management and development systems.

Planning of global CSR program.

Updating of the senior management compensation system to align it with the company’s long-term interests.

7 Report Summary

2011 Acer Numbers at a Glance

2011 Acer Corporate Responsibility Report

Corporate

Governance

Stakeholder

Engagement

Item

Consolidated revenue

Operating income

PAT

EPS

R&D spending

PC shipments

Market share

Global market share ranking

Political contributions

Major government aid spending

Board of Directors meetings

Number of directors (including executive and nonexecutive directors)

Number of independent directors

Number of supervisors

Violations of employee business behavior standards

Total number of monetary and non-monetary sanctions for noncompliance with laws and regulations

Number of participating suppliers in CSR Forum

Number of participants in CSR Forum

The number of international stakeholders in suppliers conference during CSR Forum

Participating suppliers in CDP Supply Chain Program

Participating suppliers in CDP Supply Chain Program questionnaire workshops

Unit

NT$ billion

NT$ billion

NT$ billion

NT$

NT$ million

Million Units

%

NT$

NT$

Time

Person

Person

Person

Violation

Case

Supplier

Person

Unit

%

Supplier

7

0

2

0

46

98

2008

5,462.7

140.7

117.4

4.7

550

31

10.3%

3

0

0

4

7

41%

7

0

2

0

71

163

2009

5,739.8

153.4

113.5

4.3

887

39.8

12.6%

2

0

0

7

7

62%

7

0

2

0

66

144

2010

6290.6

182.0

151.2

5.7

1,210

45.5

13.0%

2

0

0

10

6

74%

23

7

2

2

0

0

2011

4,753.4

(64.0)

(66.0)

(2.5)

1,165

39.5

11.2%

4

0

0

11

74%

17

Explanation

Not held in 2011.

Not held in 2011.

Not held in 2011.

Participants included suppliers with low 2010 ratings and new suppliers.

Report Summary

8

2011 Acer Numbers at a Glance

2011 Acer Corporate Responsibility Report

Stakeholder

Engagement

Environmental and

Energy Management

Item

Participating suppliers in CDP Pre-launch Event in

Taiwan

The total number of participants in CDP Pre-launch

Event in Taiwan

Participating suppliers in CDP Launch Event in Taiwan

Total number of participants in CDP Launch Events in

Taiwan

Suppliers participating in GHG working group

Water consumption

Solid waste

OHSAS 18001-certified ODM suppliers

Acer products takeback and recycling

Significant pollutions and leaks

Serious violations of environmental protection statutes

Scope 1 GHG emissions

Scope 2 GHG emissions

Scope 3 GHG emissions

GHG emissions intensity

GHG emissions per capita

Annual electricity consumption

Unit

Supplier

Person

Supplier

Person

2008

11

194

2009

28

239

22

205

2010

28

198

25

162

2011

8

114

8

138

Explanation

Times/Supplier — 4 5 4

Metric ton

Metric ton

39,000

12,771

Scope of calculation was 63.5% of Acer employees worldwide.

Scope of calculation was 91% of Acer employees worldwide and included paper, cans, plastics, glass, electronic waste, and others.

% ─ ─ 95.7% 100%

Kg 1,089,000 3,497,753 6,038,825 11,808,446

The scope of calculation for 2008 was Acer

Taiwan.

The scope of calculation for 2009 was Acer

Taiwan and Japan.

The scope of calculation for 2010 and 2011 was Acer Taiwan, Japan and America.

Times

Times

Ton CO2e

Ton CO2e

Ton CO2e

Ton CO2e/US$ million revenue

Ton CO2e/employee

Kilowatt hour

0

0

3,238

34,901

3,457

0

0

3,205

36,755

2,901

2.09

6.03

0

0

3,541

40,280

5,453

2.09

5.65

0

0

6,345

38,639

7,901

2.85

5.71

Including eDC.

Including eDC.

Including eDC.

Including eDC.

Including eDC.

49,954,700 61,132,293 66,585,259 65,850,315 Indirect consumption of energy by Acer.

9 Report Summary

2011 Acer Numbers at a Glance

2011 Acer Corporate Responsibility Report

Item

Petrol consumption

Diesel consumption

Environmental and

Energy Management

Lighting facility replacement in workplace to save electricity

Green electricity consumption

Participating suppliers in suppliers conference

Participating suppliers in suppliers conference

Responsible Supply

Chain

Suppliers filling out EICC SAQ

On-site audit of major suppliers

Number of employees

Percentage of female employees

Newcomers

Turnover rate

Disabling injury frequency rate

Employee Welfare and Advancement

Disabling injury severity rate

Courses opened

Number of employees trained

Total hours in training

Average hours of training per year per employee

(Male)

Unit

Liter

Liter

Kilowatt hour

2008

400,244

238,547

Kilowatt hour

Supplier

Person

%/Supplier

Supplier

Person

%

Person

%

Disabling injuries per million working hours

The number of disabling injuries/per million work hours

Course

Person/Time

Hour

Hour

46

98

45

3

6,897

-

0

0.95

2009

536,714

568,036

71

163

43

7

6,624

36.4%

0

0.67

2,235

33,261

66

144

61

17

7,757

32.0%

446

0

2010

635,717

604,406

86,000

1,305,318

80

40

7,894

33.9%

137

16.2%

2011

663,556

1,626,242

Explanation

Direct consumption of energy by Acer.

794,585

Scope of calculation was Acer's Xizhi headquarters and Aspire Park and included energysaving lights and inverter air conditioning.

Acer Germany and Acer e-Enabling Data

Center (eDC).

Not held in 2011.

Not held in 2011.

Expressed as percentage in 2008-2010, as number of suppliers beginning in 2011.

1.23

The scope of calculation for 2008-2010 was

Acer Taiwan; for 2011 it was 87.84% of Acer's global work force.

0.59

24.00

The scope of calculation for 2008-2010 was

Acer Taiwan; for 2011 it was 72.1% of Acer's global work force.

177

2,682

40,578

316

7,921

62,514

8.3

Report Summary

10

2011 Acer Numbers at a Glance

2011 Acer Corporate Responsibility Report

Employee Welfare and Advancement

Item

Average hours of training per year per employee (Female)

Management skills trainings

Funding support for external training or education

Number of employees who visited the Acer Massage

Stop

Acer Sports Team participated in sports competitions

Unit

Hour

Person/Time

Person

Person/Time

Person/Time

Customer Service

Percentage of employees that should return to work after parental leave (Male)

Percentage of employees that should return to work after parental leave (Female)

Taiwan corporate customer satisfaction

Taiwan Direct Service Center customer satisfaction

Chunghwa Telecom Customer Service Center customer satisfaction

European, Middle Eastern, and African customer satisfaction

Malaysian customer satisfaction

Thailand Service Center customer satisfaction

Significant noncompliance with regulations concerning health and safety impacts of products

Significant noncompliance with regulations concerning product and service information and labeling

Significant noncompliance with regulations concerning marketing communications

11 Report Summary

%

%

Score

Score

Score

Score

%

%

Case

Case

Case

2008

284

86.4

92.74

7.71

90%

0

0

1

2009

364

2,640

245

89

86.8

92.26

7.97

84.83%

97.20%

0

0

0

417

92

85.7

92.44

7.06

95.80%

0

0

0

2010

439

2,640

94%

63%

92

88.1

93.11

8.26

87.13%

98.20%

0

0

0

2011

7.3

412

602

2,130

1,475

Explanation

The scope of calculation is Acer Taiwan.

The scope of calculation is Acer Taiwan.

The scope of calculation is Acer Taiwan and includes the Taipei Marathon, Sun Moon Lake

Cross-Lake Swimming Carnival, and 100k bike ride.

2011 Acer Numbers at a Glance

2011 Acer Corporate Responsibility Report

Customer Service

Item

Major customer privacy complaints

Total amount of fines for major product or service violations

Number of applicants for volunteer service leave

Total volunteer service hours

Number of employees and relatives applying for volunteer service leave

Number of persons served by Acer Digital Van

Number of bags of blood donated by Acer employees

Number of Acer employees donating blood

Community

Outreach

Acer contributions

Monetary donations from Acer employees

Unit

Case

NT$

Person

Hour

Person

Person

Bag

Person

NT$

NT$

2008

2009

2010

2011

0

Explanation

38

47

0

49

882

Scope of calculation is Acer Taiwan.

Scope of calculation is Acer Taiwan.

— — 93 141 Scope of calculation is Acer Taiwan.

1,072

799

13,473,155 47,103,466 28,654,443 220,850,000

4,624,000

1,611

1,144

7,166,300

2,704

1,915

1,307

4,680,000

5,760

2,314

1,508

6,075,000

June-December 2010.

Scope of calculation is Acer Taiwan and neighboring companies.

Scope of calculation is Acer Taiwan and neighboring companies.

Donations include money, products, and company charity activities.

The scope of calculation for 2008 and 2009 was Acer Inc. and the Acer Foundation.

The scope of calculation for 2010 was Acer

Inc., Acer China, and the Acer Foundation

The scope of calculation for 2011 was Acer

Global .

The scope of calculation for 2008-2009 was

Acer Taiwan, including Acer Taiwan, Australia,

United States, Indonesia and Thailand in 2010.

The scope of calculation for 2011 was Acer

Taiwan.

Report Summary

12

Corporate

Governance

Acer, an international high-tech company with its own brand, was established in 1976, taking as its mission “Breaking the barriers between people and technology.” With operating bases are set up in over 70 countries across five continents, it engages primarily in personal computer, LCD monitor, projector, smartphone, and tablet development, design, marketing, sales, and service. At the present time, we are also actively engaged in the development of cloud computing technology. In 2011 we became the world’s second-largest notebook computer brand.

13

World's

2

-largest notebook computer brand.

2011 Acer Corporate Responsibility Report

Acer Global Overview

EMEA

Consolidated revenue by region 35.4%

PC shipments 14.64 million

Market share 14.2%

Ranking

No.Employees

2

1,910

Americas

Consolidated revenue by region 26.0%

PC shipments 10.92 million

Market share 9.6%

Ranking

No.Employees

3

797

Consolidated revenue

Operating income

Net income (loss) after tax

EPS

2009

NT$573.98 B

NT$15.33 B

NT$11.35 B

NT$4.3

2010

NT$629.06 B

NT$18.20 B

NT$15.12 B

NT$5.7

2011

NT$475.34 B

(NT$6.40 B)

(NT$6.60 B)

(NT$2.5)

PC shipments

Market share

Global

Market Share

Ranking

2009

Approx. 39.80 million

12.60%

2

2010

Approx. 45.50 million

13.00%

2011

Approx. 39.50 million

11.2%

2 4

Asia

Consolidated revenue by region 33.1%

PC shipments 13.22 million

Market share 9.9%

Ranking

No.Employees

3

2,542

2011 Acer Corporate Responsibility Report

Taiwan

Consolidated revenue by region 5.5%

PC shipments 0.74 million

Market share 23.1%

Ranking

No.Employees

2

2,645

Acer global overview

14

2011 Acer Corporate Responsibility Report

Corporate Governance

History and Development

In July 2011, Acer acquired American cloud computing company iGware Inc. to improve brand value, provide customer service, participate in the development of Acer's own AcerCloud system, and be part of Acer's long-term plans for developing cloud computing technology. In August 2011, the Longtan-based Acer e-Enabling

Data Center (eDC) established the Cloud Competency Center, which aims to become a fertile ground for the development of cloud computing solutions for medium-sized enterprises.

Economic weakness in Europe and America, together with problems caused by internal organizational changes and channel inventory, impacted Acer’s consolidated operating revenue, seeing it drop 24% in 2011 to NT$475.34 billion. The company suffered an operating loss of NT$6.4 billion, after-tax net loss of NT$6.6 billion, and after-tax loss per share of NT$2.52. After more than a year of reorganization and reform, the company’s new management team is now operating more stably by the day and Acer, under its postreorganization operating strategy, is on the way to returning to profitability.

The most promising opportunities for the computer industry in 2012 will be the introduction of the Ultrabook in the first half of the year and Windows 8 in the second half. The lightness, thinness, rapid boot up and Internet connection exemplified by the Ultrabook have become trends in the notebook computer industry; Acer has already carried out extensive deployment in this field, and its high-efficiency, low-carbon, material-reducing, and recyclable-material green design marks a new milestone in notebook innovation. Windows 8 software can not only be installed on the Ultrabook, but also on new mobile devices, thus creating considerable business opportunities. (

See page 33 )

In the future Acer will adopt a basic strategy of “winning through simplification,” meaning that it will streamline brands, reduce model numbers, and simplify operating procedures so that more resources can be assigned to product innovation, design, performance, and quality; at the same time, the company will speed up its logistics

15 History and Development and re-establish its competitiveness. To this end, in PC sector, investment in brands and models will be reduced and growth in volume of shipments will be pursued; in the tablet and mobile phone sector, selective investment will be carried out so as to emphasize the pursuit of performance.

Acer’s strategic goal is to focus on the standpoint of the user in strengthening innovation capability, creating customer value, upgrading brand positioning, and achieving better performance and profit. Business policy will focus on consolidating the company’s position of global leadership in the notebook computer industry, pragmatically managing mobile devices, boosting the growth of commercial products, developing cloud computing services, and expanding further in major emerging markets.

Market Recognition

Acer operates several product lines and brands under its banner; in addition to developing new consumer demand-oriented products, the company focuses on a strategy of multiple-brand optimization in carrying out optimal planning for product properties and brand images with the aim of providing customers with the finest of products. Various Acer products won the following domestic and international awards in 2011:

Gateway FX desktop games won the innovative 2011 design award in the hardware category at the Consumer

Electronics Show (CES) in the U.S.

The Acer Aspire 9843G and

Gateway FHD 2303L displays won the iF industrial design award in

Germany.

The Iconia Dual-screen Touchbook

Notebook Computer won the

Favorite Gadget award at CES , the

German red dot 2011 award , and

Taipei's Design & Innovation Award

The Acer C20 Pocket Projector won

Germany’s iF industrial design award and red dot 2011 design award.

The Iconia Smart mobile phone and Acer Revo 100 home desktop computer won the best product award and innovative design awards at Computex Taipei

Incorporating the design concepts of environmental protection and user orientation, Acer products have won the affirmation of consumers as well as numerous awards in product and industrial design competitions.

Marketing Communication

Acer holds firmly to the principles of honesty, transparency, proactiveness, timeliness, and regularity, and carries out marketing communication with consumers and partners, in conformity with local laws and regulations, through the corporate website, subsidiary websites, advertising, product exhibitions, press conferences,

Corporate Governance

2011 Acer Corporate Responsibility Report mobile exhibitions, and sponsorship of activities. In these ways the company communicates information on its corporate ideals, products, and services.

Acer is honored to have the opportunity to be part of the Olympic

Games. On January 1, 2009, we became a Worldwide TOP

Partner, and were also a partner for the Vancouver 2010 Olympic

Winter Games and London 2012 Olympic Games. For the London

2012 Olympic Games we donated state-of-the-art technology and products for the Technology Operations Centre and Integration Test

Lab, located at LOCOG Headquarters, providing more than 25,000 pieces of calculating equipment and sending a 400-strong technical team to provide technical support during the entire course of the

Olympic Games. The main functions of the Technology Operations

Centre included real-time monitoring technology for all venues, venue support, and problem reporting and management. The

Integration Test Lab carried out more than 200,000 hours of testing of the timing and results system for the London 2012 Olympic

Games and testing of other major systems, such as the live broadcast information system used by the Olympic Broadcasting

Services and the Olympic Data Center. We are confident that our outstanding technology and comprehensive preparations contributed to the success of the Olympics.

Corporate Governance

In the re-election of Acer’s Board of Directors in 2011, two independent directors, F.C. Tseng and Julian Horn-Smith, were elected with the aim of using the wisdom and professionalism of outstanding international industry personages for participation in corporate operations and decision-making, further fulfilling corporate governance requirements and improving management quality. The new Board of Directors has established a remuneration committee and financial statement/internal control audit committee, chaired by the new independent directors Horn-Smith and Tseng, so as to bolster their independence, reinforce the committees’ operations, and upgrade corporate governance to a higher level. The committee is responsible for evaluating the performance of the operations manager, determining that manager's compensation, assessing the performance of operating teams, staff compensation and formulating bonus distribution policies. The committee reviews and ratifies items on the agenda annually and schedules provisional meetings as circumstances demand. In 2011 we also implemented more comprehensive internal privacy protection, giving employees a more open channel for making suggestions to the independent director who chairs the internal control audit committee and providing better protection for employee suggestions. stage of development—environment, society, governance, and communication (ESGC). The aim is to deepen the internalization of

CSR so that “Sustainable Acer”'s strategic directions will be clearer to internal units at all levels.

Green Product

Energy & Climate

Take Back

Waste

Water

E

Environment

CSR

G

Governance

Report

Web Disclosure

Stakeholder

Engagement

Green Marketing

Socially Responsible

Investing

DJSI

C

Communication

Corporate Governance

CSR Governance

Incentives for Green & Low

Carbon Innovation

SMART Strategy

Corporate Key Aspects and Issues 2011-2014

Employee

Supply Chain

Community

Corporate Responsibility Policy and

Strategy

Acer, as a multinational enterprise, fully understands that different regions have different key CSR issues and that risk control cannot be limited to the headquarters alone. After years of effort, we entered the strategy implementation stage by setting up a Global

CSR Committee to expand the scope of the company’s internal

CSR governance system. We also reviewed Acer’s original five major orientations—energy and climate change, green products, product recycling, supply-chain management, and information disclosure and communication—and carried out a re-categorization of key issues, proposing four major orientations for the next

Corporate Governance

16

Corporate Governance

Corporate Responsibility

Governance and Expansion of the

Implementing Organization

The issue of sustainability is becoming more important to Acer’s global operations every day. In response to this, we readjusted our

CSR governance and implementing organization and established a new Global CSR Committee based on implementation and experience built up over recent years. In addition to the supreme policymaking body of this new governance and implementation organization, the CSR Executive Committee, we have set up, under the different regional offices, Regional Office (RO) CSR

Committees with memberships comprised mainly of RO heads, national subsidiary heads, and RO business unit heads. We have also established RO CSR executive secretarial positions to assist with CSR matters in the different regions. The new Global CSR

Committee is made up of the RO CSR executive secretaries for the different regions and the headquarters BU heads; it is charged with carrying out the internalization of CSR in regard to the four major orientations of environment, society, governance, and communication, and with setting a clear timetable for progress.

The Global CSR Committee must set up relevant strategies at the beginning of the year, review strategic directions and progress of implementation in the middle of the year, and carry out an annual summation and review of programs implemented at the end of the year. The close integration of all these efforts demonstrates that we will take further action in regard to sustainability, and the establishment of these different bodies will help us become an

ICT brand and company with global leadership capability and sustainability.

Corporate Responsibility Policy

1. We aim to meet the growing expectations of stakeholders and seek the continuous improvement in business operation, better communication with stakeholders, recognition and support from the market.

2. We will walk the talk on CSR by means of a top-down process with practical, prioritized, workable and measurable action plans which are relevant to our products and services.

3. We will manage the risks and explore the opportunities of sustainable development through efficient governance wherever we operate.

4. We will engage suppliers to work together for business ethics, mitigating climate change and improving resource efficiency.

Definition of Acer’s Corporate

Sustainability

We define Acer’s corporate sustainability as “A successful global IT company which achieves in triple-bottom line, i.e., outstanding balanced performance in economy, environment and society”, thus pursuing financial growths, environmental protection and social advancement as Acer actively works to fulfill its CSR.

2015~2020

Creating Value

(with all departments as the driving force)

2011~2014

Mapping strategies

(with CSO and other departments as the driving force)

2008~2010

Building a foundation

(with CSO as the driver)

2005~2007

Preparation

Future focuses

• Intangible asset.

• Brand differentiation.

2011 Acer Corporate Responsibility Report

Main points of this stage:

• To internalize the issue of sustainability into all departments’ daily operations.

• To follow global trends and promote realization of these important issues.

• To develop strategies for each issue.

Main achievements in 2011:

• Established Global CSR Committee.

• Enhanced internalization of sustainability into all regional offices

(RO).

• All regional offices commenced leadership in sustainability-related operations.

Achievement highlights of this stage

• Corporate Sustainability Office (CSO) established.

• Acer's CSR policies formulated.

communication with stakeholders and information disclosure, and product takeback.

• Annul stakeholders communication meeting kicked off.

• Five initiatives and focuses determined: the supply chain social and environmental performance management, the development of green products, policies and policy management battling climate change,

• Timeline: A business model concerning sustainability set up internally.

Achievement highlights of this stage

• Acer was awarded the ISO14001:

2004 certificate.

• Acer began to regularly publish its annual environmental report.

• Meeting the WEEE and RoHS directives by the EU.

• The HSF and Green Product initiatives launched.

• Suppliers conferences began periodically.

• Acer began to participate in the carbon disclosure program.

17 Corporate Responsibility Policy and Strategy

Corporate Governance

2011 Acer Corporate Responsibility Report

CFO & Spokesperson

Chief Marketing

Chief Tech.

Operation Analysis

Office

Shareholder’s Meeting

Board of Directors

Chairman & CEO

Corp. President

Supervisor

Auditor

Corp. Sustainability

Office

With the establishment of the Global CSR Committee, the issue of sustainability will be instilled more deeply into Acer’s locations around the world as well as its internal departments, with the aim of realizing the vision of a “Sustainable Acer.” With a focus on responsibility, innovation, profitability, and efficiency, and under our sustainable new channel business model, we will bring our customers and business partners the ability to advance toward sustainability as we develop into an IT brand and company with global leadership capability.

Executive Committee Acer Foundation

RD Center

Smartphone

Business

Taiwan

Operations

EMEA

Operations

Pan

America

Operations

Marketing

& Branding

Channel

Business e-Enabling

Services

Business

E-TEN

Information

Business

Cloud Tech.

Business

PC Global

Operations

China

Operations

Asia

Pacific

Operations

Information

Technology

Customer

Service

Acer Organization Chart

Finance

Human

Resources

Legal

General

Affairs

Global CSR Committee

RO CSR Committee

Corporate

Sustainability Office

(CSO)

RO CSR Exe.

Secretary

NS CSR Committee

Sustainable Development Office Organization

ECGC

Working Groups

Corporate Responsibility Policy and Strategy

18

Stakeholder

Engagement

Acer understands that the pursuit of sustainable development and the fulfillment of corporate social responsibility can be carried out successfully only with the cooperation of stakeholders of all kinds. To this end we have engaged in a long-term effort to build up mechanisms and platforms for communication through which we can discuss public policy and new issues with stakeholders. We hope, in this way, to exercise our influence as an industry leader and help Taiwan’s ICT industry enhance its ability to cope with the issue of sustainability.

The Acer CSR Forum has been held since 2008, with participation by international stakeholders and

Taiwan’s ICT industry, to bring about face-to-face communication and discussion of the challenges of sustainability faced by the ICT industry, and of solutions to those challenges. In coordination with the readjustment of Acer’s global CSR governance mechanism, including planning for the establishment of an Acer Global CSR Committee, the decision was made in 2011 to move the annual Acer CSR

Forum from the fourth quarter to the first quarter with the aim of helping more senior managers to understand global trends in sustainable development and think about Acer’s role and strategies in this regard.

19

Sponsor of CDP pre-launch and launch events in Taiwan for

4

years running.

2011 Acer Corporate Responsibility Report

2011 Acer Corporate Responsibility Report

Stakeholder Engagement

Public Policy Participation

Acer is actively involved with public policy related to CSR, sustainable development, and industry. In addition to offering suggestions based on its abundant experience in global commerce,

Acer joins organizations related to these issues and participates both directly and indirectly in discussions and pilot projects. It continuously expresses relevant opinions with the aim of creating, together with the government, an environment that is more favorable to the realization of CSR and sustainable development.

Suggestions on Energy and Climate

Change Policy

Acer has had an active long-term involvement in the provision of sustainability policy suggestions. This is a time of ongoing development in energy and climate change issues, and of a new situation for the United Nations Framework Convention on Climate

Change. We feel that in addition to promoting our own business growth, we in industry should vigorously voice our views with the aim of building an operating environment that encourages enterprises to live up to their corporate responsibility. Further, because Taiwan's own energy resources are lacking, in the past the island has thus relied on imports of fossil fuels as a significant part of meeting its energy needs, and if the government does not take the initiative, not only will energy supply pose problems, the relatively large carbon footprint of products resulting from the CO2 emissions factor of electricity could possibly create competitive issues in the form of trade barriers. For this reason, in a “weekly journal” interview hosted by ROC President Ma Ying-jeou this year,

J.T. Wang, in his capacity as Acer’s chairman and group CEO as well as chairman of the Taipei Computer Association, suggested to the president that the government should devote more effort to public policy in regard to energy conservation and carbon reduction.

He also voiced the opinion that the government should develop policies to encourage industries to develop green, low-carbon products. He expressed the hope that in the future, the government would work actively to improve Taiwan’s energy structure and develop renewable energy, and would provide a market mechanism under which companies would voluntarily purchase clean energy and be encouraged to implement energy conservation and carbon reduction measures. This would facilitate a gradual shift to lowcarbon industries while maintaining industrial competitiveness. At the end of 2011 the government announced a “green electricity pricing policy,” which was expected to be implemented in 2012. For details, please visit the President Office website .

Preventive management of chemicals

In addition to holding to strong principles regarding preventive management of chemicals, during the 2009-2011 consultation period for the revision of the EU’s RoHS, Acer cooperated with its allies in voicing to the European Parliament the hope of having

PVC/BFR and other chemical substances containing organic chloride and organic bromine listed in the law so as to avoid harming the environment. Although the final revision has not yet been passed, we hope to take advantage of the law to implement across-the-board management and to use a variety of channels, such as the Supplier Conference and the Acer CSR Forum, to propagate the concept of preventive management and carry on continuing communication and discussion with suppliers and other stakeholders worldwide.

Dealing with Conflict Minerals

On the issue of conflict minerals, Acer supports the U.S. Dodd-

Frank Wall Street Reform and Consumer Protection Act (H.R. 4173) and similar requirements of other areas. It is an active participant in the EICC’s Extractive Working Group and Extractives Due Diligence

Sub-working Group; supports the EICC/GeST Due Diligence ,

OECD Due Diligence Guidance and Piloting, and Smelter Audit and Verification Programs; and backs In-region Sourcing Schemes, as well as carrying out effective collective communication with stakeholders. In 2011 we adopted the EICC/GeSI due diligence tools and carried out investigations of suppliers’ smelting plants.

In the future we will continue cooperating with the EICC/GeSI

Extractive Sub-working Group and support the EICC/GeST Conflict-

free Smelter Program ( See page 37 ) with concrete action.

WiMAX Development

During the opening ceremony of Computex Taipei, J.T. Wang, in his capacity as CEO of Acer Inc. and chairman of the Taipei Computer

Association, appealed on behalf of the WiMAX industry to ROC

President Ma Ying-jeou, who was a guest of honor at the event, for the government to focus on the development of WiMAX in Taiwan and coordinate with the competent authority to review related regulations and allow existing WiMAX operators to consolidate.

This would help resolve the problem of inadequate coverage, boost the number of subscribers, and expand the market. In addition,

WiMAX could help enhance the functioning of the earthquake earlywarning and command center systems, satisfy the needs of public communication networks, and play a significant role in the overall national disaster prevention system.

Public Policy Participation

20

Stakeholder Engagement

2011 Acer Corporate Responsibility Report

Support for New Issues

Sustainable development encompasses a great many issues, and Acer fulfills its responsibility as a citizen of the world by giving long-term support to specific issues with the aim of motivating more stakeholders to pay attention and take action. In addition to supporting the propagation of the Carbon Disclosure Project in

Taiwan, in 2011 we also began supporting the Vision 2050 plan and water issues.

Carbon Disclosure Project

Acer and the Acer Foundation have provided long-term sponsorship for the CDP’s promotional activities in Taiwan beginning in 2008, helping the island’s industries to learn about the latest trends in carbon control and helping enterprises respond to the demands of international stakeholders.

In coordination with the scheduling of the CDP questionnaire, we provide sponsorship every year for the CDP Pre-launch Event and

CDP Launch Event, and invite all Acer suppliers to participate in meetings, engage in discussions of the questionnaires and their results. To help more enterprises and stakeholders understand the importance of the carbon disclosure issue, in 2011 we started inviting financial experts to participate and analyze, from the viewpoint of capital markets and institutional investors, the concerns and attitudes of international stakeholders in regard to the issue of carbon emissions control.

CARBON

DISCLOSURE

PROJECT

250

200

150

100

194

50

0

Person

2008

239

205

2009 2010

Pre-launch Event in April

Launch Event in October

198

162

114

138

2011

90

60

30

150

120

103

0

Company

2008

138

102

Pre-launch Event in April

Launch Event in October

125

102

85

97

2009 2010 2011

WRI/WBCSD Global Pilot Project for

Product and Value Chain Carbon Footprint

Standards

In 2011 Acer continued leading suppliers and one model each of netbooks, displays, and projectors in participation in the

GHG Protocol Global Pilot Project for Product and Value Chain

Carbon Footprint Standards as formulated by the World Business

Council for Sustainable Development (WBCSD) and WRI, sharing experiences and suggestions on the carbon footprint inventory for

ICT products to serve as a basis for the setting and improvement of standards. The WBCSD and WRI announced the formal versions of the Greenhouse Gas Protocol Corporate Value Chain (Scope 3)

Accounting and Reporting Standard and Greenhouse Gas Protocol

Life Cycle Accounting and Reporting Standard in October 2011, and began implementing them worldwide, to help give companies a general understanding of carbon emissions throughout the value chain and of how to keep their impact under control.

Corporate Value Chain

(Scope 3) Accounting

HF

Cs

PF

Cs

and Reporting Standard

d d rta istr tio ibu n

Supplement to the GHG Protocol Corporate

Accounting and Reporting Standard

n y en tre dat ofm so ld life en pr t o od uc ts

CO

eam, wn use leased assets ooling for o y ed fuel and franchises ser vices tra ns an po d d rta istr tio n ibu tio n wast e ed in yee leased assets inv estments

W O R L D

R E S O U R C E S

I N S T I T U T E

Product Life Cycle

Accounting and

Reporting Standard e-reader version

W O R L D

R E S O U R C E S

I N S T I T U T E

Vision 2050

After becoming a member of the WBCSD in 2010, we responded to that year’s Vision 2050 proposal. At the end of 2011 we began working, together with companies in the Taiwan Corporate

Sustainability Forum that are concerned with the issue of sustainability, on formulating a local Taiwan Vision 2050 with the hope of providing companies, the government, and society

21 Support for New Issues

Stakeholder Engagement

2011 Acer Corporate Responsibility Report with a blueprint and a role definition for the island’s sustainable development in the future. We also worked on mapping out short-, medium-, and long-term transition targets so that we can strive together toward sustainable development throughout the world and advance toward realizing Vision 2050.

The Water Issue

According to UN statistics, by 2015 two-thirds of the world’s people will face water shortages. This will in turn have a severe impact on the use of water by agriculture, households, and industry; it also means that in the future, the consumption of water necessary for

ICT products, from the acquisition of materials and the production process to the provision of after-sales services to consumers, faces the risk of shortages. As an ICT product value chain integrator, we must make early preparations for this future threat. We held two New Focus on Management Tools to Develop Sustainable

Global Enterprises seminars this year with the aim of concentrating more attention on the water issue from our suppliers and other industries by introducing the global water-supply situation and the risk assessment tools that have been developed by major worldwide organizations. A total of 45 enterprises participated in the two seminars, helping domestic enterprises to understand the new trends affecting corporate sustainable development.

Introduction of water-resource risk assessment tools

Other Initiatives and Participation

Promotion of the Taiwan Corporate

Sustainability Forum

The Taiwan Corporate Sustainability Forum was established in 2008 with the goal of providing representative Taiwanese enterprises with a platform for discussion and sharing on the issue of sustainability.

Acer served as the convener of the Forum beginning with its second iteration in 2011, continuing to promote cooperation within the ICT industry and with other industries in the implementation of special action plans with the aim of bringing about more sustainable practices among Taiwanese enterprises.

In 2011 Acer and the other member companies of the Forum offered insights on the use of the GRI Guidelines by Taiwanese enterprises, and their suggestions for improvement of the fourth generation (G4) that was about to be launched. We will continue following up on the continuing development of the GRI G4 Guidelines and providing feedback on the experiences and suggestions of Taiwanese enterprises.

At the end of 2011 Acer, the Forum, and the Taiwan Business

Council for Sustainable Development (BCSD-Taiwan) jointly organized the New Opportunities in Corporate Development –

Creating Sustainability in 2012 sustainability sharing event, inviting eight corporations to share their outstanding performance in CSR and giving Taiwanese enterprises a chance to inspire each other to develop more and different kinds of innovations and concepts.

Response to the “Healthy, Low Carbon,

Happy Life – Everybody Together

Movement”

In 2010 Acer began responding to the Movement One initiative of the Taiwan BCSD, encouraging employees to make one small change in their daily lives and habits with the aim of achieving healthy, happy lives and a sustainable environment. In 2010 we responded to the “Healthy Vegetables – Eat Less Red Meat” activity by urging employees, in concert with “Earth Month,” to eat one vegetarian meal per week. In 2011 we participated in the “Yes, I

Can” one tree for everyone activity initiated by Movement One in response to the UN’s International Year of Forests. We will continue participating in Movement One’s activities with the aim of making sustainable living a reality.

Other Initiatives and Participation 22

Environmental and Energy

Management

Climate change and consumption of natural resources will inevitably have a major impact on our lives both at home and in the workplace. We believe that ICT technology can play a central role in assisting businesses and consumers to adapt to the coming low-carbon economy. To this end, Acer is always looking for ways to improve the environmental performance of our products and services.

The environmental responsibility facet of our corporate sustainable development is seen in both our business operations and product design. We maintain a firm grasp of the risks and opportunities inherent in climate change so that we can advance toward our target of becoming a climate-friendly corporation.

Acer’s new IT solution will help both businesses and individuals use energy more efficiently. We also hope to use our influence to encourage both our suppliers and customers to reduce their impact on the environment through using Acer products and services, thus all doing our part in caring for the environment.

23

Recipient of EPEAT gold medals for

31

products

100%

of notebook models have received Energy

Star certification.

2011 Acer Corporate Responsibility Report

2011 Acer Corporate Responsibility Report

Environmental and Energy Management

Comprehensive Environment,

Health, and Safety Management

By sticking to our environment, health, and safety (EHS) policies and by implementing the Acer Environment, Health and Safety

Management System we have been able to fulfill our pledges and reach our corporate targets with regard the environment and employees’ health and safety. These policies include:

• Managing the potential risks in people’s interactions with the environment

• Reducing the environmental impact of business operations, services and products

• Conducting regular reviews of our degree of adherence to inhouse standards and statutory regulations

• Ensuring that our employees enjoy a safe working environment

• Implementing all necessary health and safety measures

In 2011 Acer conducted 13 training courses on EHS audits and internal audits. We have an accredited external agency audit our performance each year to ensure that every item in our EHS management program is being fully implemented. In 2011, the

EHS management system at Acer’s Xizhi office headquarters passed a triennial expanded recertification audit and was awarded

ISO14001:2004 and OHSAS18001:2007 certification. The scope of this certification included the following brands: Acer, Gateway, eMachines, Packard Bell, and Founder.

We frequently monitor the system in action to ensure that the measures we are taking are fully concordant with the law. As for items that audits reveal not to be concordant, we seek out the root of the problems and implement improvement plans to ensure that these errors are not repeated. We believe that increasingly indepth implementation of the requirements of our EHS management system is the best way to maintain a comfortable work environment for our employees and manage health and safety issues.

Acer also requests all suppliers to establish their own autonomous

EHS management systems. In 2011 all of Acer’s Original Design

Manufacturing (ODM) suppliers obtained ISO 14001 and OHSAS

18001 certification. Acer also conducts audits of suppliers’ EHS management systems to ascertain their depth of implementation and effectiveness.

For more on health and safety management please refer to the chapter on employee welfare and advancement (

See page 44 ).

Our Operations and the

Environment

We take the administering of our EHS system very seriously. We set targets and draw up action plans every year related to improving

EHS performance and try our best to reduce the impact that our operations – use of water, energy, and paper; waste generation; etc. – have on the environment. In 2011 Acer had a clean record as regards major pollution incidents or violations of environmental regulations.

Acer Water Plan

Acer’s global operations focus on marketing Acer products and providing customer services. As we do not have factories, our primary facilities are offices, and thus the water we consume is used for typical office-block facilities such as washrooms and airconditioning. As such, we have very limited options when it comes to making big reductions in our water consumption. We have, however, been working with our landlords to improve the water and energy saving features of the buildings we rent. We ask our employees to use water sparingly and report leaks, and have beefed up our usual system of in-house patrols. We have also installed water-saving equipment, such as taps with the watersaving label. In 2011 our Xizhi headquarters consumed 33,100 tonnes of water, a savings of 3,500 tonnes on 2010. In 2011 we also started to collect data on our total worldwide consumption of water and arrived at the figure of 39,000 tonnes. This amount only accounted for 63.5% of our employees, so we are still working to gather more comprehensive figures. As for wastewater, all wastewater from our offices around the world is discharged into public sewers according to local regulations and is thus treated by wastewater treatment plants.

Acer is an ICT brand company, and although we are not part of a water-intensive industry our manufacturing chain and markets are spread all over the globe. Water issues are becoming more prominent by the day and this will bring both direct and indirect challenges to our commercial development. We have thus drawn up the Acer Water Plan, which was implemented beginning in 2011 and marks the first time that we have employed the Global Water

Tool developed by the WBCSD. The tool will be used to analyze the risks inherent in water shortages. We will also begin to focus more intensely on water resource issues from a macro-economic perspective so that we can lead our own suppliers, and Taiwan’s industries as a whole, in getting a firm grasp on this new trend in corporate sustainable development.

is se m ina

A tion

Sup

B plie rs

Acer ns

Acer Water Plan

Comprehensive Environment, Health, and Safety Management

24

Environmental and Energy Management

2011 Acer Corporate Responsibility Report

Long-term targets for the Acer Water Plan

1. Plan A – Dissemination: By focusing long-term on water resource issues we hope to show leadership to other Taiwan industries.

2. Plan B – Suppliers: We will assist our suppliers to recognize and manage their water resource risks so that in the eventuality of water shortages we can quickly work together to minimize impacts.

3. Plan C – Acer Operations: Recognizing and understanding the risks and opportunities that might arise from having to face water resource shortages in the future.

In order to achieve the long-term goals mentioned above we have formulated two main administrative approaches:

(1) Building In-House Capability

We conducted our first water resources risk assessment in

2011, which focused heavily on establishing a basic outlook and identifying future trends. This assessment will become the cornerstone of future commercial strategies and water resource management for our supply chain.

1. We used the WBCSD Global Water Tool to conduct water resource risk analysis at all Acer operations centers around the world.

2. We have held the New Focus on Management Tools to Develop

Sustainable Global Enterprises – Water Risk Assessment Tools

Seminar on two occasions. ( See page 22

)

(2) Supply Chain Management

We used the WBCSD Global Water Tool to first conduct supplier water resource risk analysis at all Acer supplier operations centers in China.

We use the WBCSD Global Water Tool to conduct water resource risk analysis at all Acer operations centers globally, based on the Annual Renewable Water Supply per Person index for 1995 and the Projected Renewable Water Supply per Person index for

2025. It was found in both indexes that over 50% of our operations centers are situated in areas that are “extremely likely” to face water shortages. In 1995, 15% of our operations centers were in areas recognized as being of “extreme scarcity”; this proportion is projected to increase to 22% by 2025. We will be looking much more closely at the issue of water scarcity areas in order to help us build up a more comprehensive picture of our overall use of water resources.

Capacity

Building

Supply

Chain

Management

Concept

Building

Training

Accounting Risk Mapping

Water Footprint

Priority

Strategy &

Stakeholder

Engagement

Opportunity

&

Innovation

Establish for Management and Innovation Capacity

Toward an Advanced & Competitive Global Company

No Data

Extreme

Scarcity

Scarcity

Stress

Sufficient

Abundant

10

10

18

17

18

18

20

23

24

26

28

28

0 5 10 15 20 25 30

1995

2025 No.of Operations centers

Annual renewable water supply per person.

Notes:

The Annual Renewable Supply per Person index is compiled from the results of the analysis of a World

Resources Institute (WRI) model that combines volumes of rainfall and runoff in river drainage areas around the world. The model indicates that areas in which the annual average per person supply of water is less than 1700 cubic meters have a very high probability of facing water scarcity.

The Global Water Tool was developed in 2007 by the World

Business Council of Sustainable Development (WBCSD) as a water resource risk assessment tool. The data in the database that it is connected to is provided by important international organizations such as FAO, WHO/UNICEF, and WRI. The Global Water Tool can give better risk analyses of the global distribution of water resources so that we can quickly spot high-risk areas.

Acer Water Plan administrative procedures.

Our Operations and the Environment

Environmental and Energy Management

2011 Acer Corporate Responsibility Report

Waste Management

Acer Taiwan implements waste management in its office buildings by providing convenient recycling points for our employees so that they can recycle food left over from their meals and separate their refuse into containers for plastics, aseptic containers (Tetra

Paks), glass, and metal cans. The 2011 recycling statistics for our

Xizhi headquarters are as follows: 464 kg of metal cans; 557 kg of

PET bottles; 176 kg of aseptic containers; 74 kg of glass bottles; and 4,844 kg of waste food. All of our waste is handled by certified waste disposal operators and we sometimes pay unscheduled visits to their premises to ensure that our waste is being recycled or disposed of according to regulations. Our waste reduction efforts have paid off: apart from unwanted IT equipment, the 2011 amounts of waste in other categories were much lower than in 2010. The

2011 waste statistics for our Xizhi headquarters are as follows:

35 kg of waste fluorescent light tubes; 11 kg of waste batteries;

409 kg of waste DVDs; 7,927 kg of waste metal; and 186 broken

IT machines. Statistics show that Acer’s headquarters in Xizhi produced 22.2 tonnes of waste in 2011, of which 8,754 kg was industrial waste. The amount of waste produced worldwide by Acer was 12,771 tonnes, and this included paper, metal cans, plastics, glass, and electronic products, among other categories. The scope of the statistics covered 91% of Acer employees around the globe.

worldwide; the 2011 survey showed that about 80% of our branch offices had already established a paper recycling system. In 2011

Acer Pan America branches recycled 270 tonnes of paper. The

Singapore branch has a particularly effective system that managed to recycle 30 tonnes of paper. Acer UK started recycling paper and plastics in its offices in 2010, and by 2011 recycled 72% of all office waste.

Raising Employee Awareness of

Environmental Issues

Every year Acer Taiwan headquarters' volunteer team holds a number of voluntary environmental events and activities for Acer employees that give them the chance to gain a greater depth of understanding regarding the importance of environmental conservation. In 2011 we held an in-house activity called “Carry

Acer Singapore adopted a slightly different method of deepening their employees’ understanding of the importance of environmental conservation by participating in Earth Hour, a global environmental event. Employees were sent emails and posters were hung up in their offices to encourage everyone to turn off all lights for one hour from 8:30 pm on March 26 and to visit the Earth Hour Web site to learn more about the event.

Employee response was uniformly positive.

Paper Reduction and Recycling

Acer Taiwan headquarters has been using renewable paper for many years now and we have also been encouraging our employees to do double-sided printing and photocopying. We are gradually systemizing the management of all of our operations to reduce our use of paper. In 2011 our volume of photocopies was

226,000 sheets fewer than in 2010, a reduction of about 5%, and the amount of recycled paper was 3,510 kg. At the end of every quarter we destroy unwanted confidential documents using water, instead of burning or burying them, which avoids polluting the atmosphere or soil. In 2011 we destroyed about 9,000 kg of confidential documents in this way, thus reducing our carbon footprint by 7.6 tonnes of carbon dioxide equivalents. We are currently conducting a paper and cardboard packaging recycling survey of all our branch offices

Acer Vietnam, by contrast, looked to their customers by inviting them to participate in their 15 Green Days with Acer environmental protection competition. Our Vietnam branch also financially supported the Climate Camp forum to help companies understand climate change issues.

Acer Japan also remembered their customers by sending

Carry Environmental Protection with You

Since 2008, every year from April 22 to June 21 staff volunteers have been holding a series of activities to raise environmental awareness, from switching off office lights and taking the stairs to not eating meat on Mondays. A new activity, “Carry

Environmental Protection with You,” was launched in 2011, encouraging everyone to reduce waste and show their concern for Earth by bringing their own cups for purchasing beverages.

Environmental Protection with You” which encouraged our employees to bring their own cup when buying beverages. We also offered three mini eco-holidays for our employees: A trip to

Guandu Nature Park learn how to conserve paddy fields; a trip to Baxianshan Nature Center to repair hiking trails; and a trip to participate in the “One Tree for Everyone” tree planting event. them, and all employees, an innovative temperature-sensitive calendar with a clever design that allows indoor workers to see at a glance whether or not the air-conditioning is set at an appropriate temperature.

Acer India held a series of activities to raise employee environmental awareness as part of World Environment Week, which leads up to World Environment Day on 5 June. Some of their activities were:

• What an Idea! – Acer employees were encouraged to think up good CSR ideas.

• Car-pooling – Acer employees were encouraged to carpool with their neighbors to reduce air pollution.

• Say No to Plastic! – Employees made paper bags from waste paper, with a prize given to the employee who made the most.

• Bus Day! – Employees were encouraged to use public transport to commute to work.

• Plant a Sapling! – Employees were given tree saplings to plant in their gardens or neighborhoods.

• Color Me Green! – All employees wore green for a day to symbolize unity of purpose during World Environment Week.

Our Operations and the Environment 26

Environmental and Energy Management

2011 Acer Corporate Responsibility Report

Product Design that Incorporates

Environmental Considerations

Here at Acer we are continually trying to reduce the environmental impact of our products beyond just adhering to government regulations. In order to meet even more challenging standards – such as PVC/BFR Free, EPEAT, and Energy Star – we are striving to improve our products’ energy efficiency, packaging design, and recycling, and effectively manage their chemical content. By reducing the environmental impact of our products at every stage of their life-cycle, we are helping our customers to save time and resources and live and work in a more sustainable way.

Raising Energy Efficiency

Being in accordance with the EU’s ErP directive is the basic energy efficiency requirement of all Acer products, including for “powerdown” and “switch off” functions, and for external power supply equipment. In 2011 all of our range of notebook computers was accredited by ENERGY STAR®, and from 2012 all of our monitors will carry the ENERGY STAR label. The Acer range of notebooks now also have screens that use energy-saving LED backlighting.

We believe that raising the energy efficiency of our products is a big part of our responsibility to the citizens of the world and future generations to come.

Properly Managing Chemical Substances

In terms of managing chemical substances, all Acer products are now fully accordant with the requirements of the EU’s RoHS and

REACH directives. In fact, in our enthusiasm to be eco-friendly we have taken the principle of preemption a step further and now have a system of mutual chemical substance management with our suppliers. This means that requirements regarding the chemical content of anything we usually order from our suppliers are stricter than legally necessary. We and our suppliers also pay close

27

Product Design that Incorporates Environmental Considerations attention to whether or not the chemical content of our product is a potential threat to the environment. If such chemicals are discovered we immediately announce that we will be putting them on our lists of controlled/banned substances.

For example, PVC cables and all materials that contain BFRs may produce dioxins when burned in incinerators, and so in order to prevent this kind of problem from occurring, Acer has been working with suppliers to find feasible alternatives to PVC and BFRs.

We have also been busy establishing waste product recycling channels to mitigate the environmental impact of our products being improperly recycled or disposed of. PVC/BFR-free products that we released in 2010-2011 include the following.

TravelMate 8172T

Notebooks

TravelMate 6595T

TravelMate 8372T

TravelMate 8472T

TravelMate 8572

NS10(Gateway)

NS30(Gateway)

NS41(Gateway)

TravelMate 6595TG

TravelMate 8573T

TravelMate 8573TG

TravelMate 6495T

TravelMate 6495TG

TravelMate 8473T

NS51(Gateway) TravelMate 8473TG

Monitors

C233HL C193HQL

C203HL

Desktop Computers

C193WL aHornet

Smart Hand-Held Devices

ICONIA Smart

Out of the many voluntary environmental protection standards, the EPEAT standards are becoming more prominent due to their successful global development. EPEAT encourages the use of plastic regrind, which increases the distribution of materials from recycled electronic products. EPEAT also has stricter hazardous substance management standards than RoHS. Other EPEAT requirements, including recycling, product life, energy saving values, corporate environmental protection performance, and environmental packaging, are all important indicators of a product’s environmental pedigree. We are working hard to overcome managerial and technical challenges to reduce the number of these hazardous substances – permitted though they may be – so that our products meet EPEAT’s strict standards. In 2011, 31 of our products were awarded the EPEAT Gold and 61 of them were awarded their Silver.

Acer EPEAT

Products

Notebook

Desktop

Display

Integrated Desktop

Computers

Total

2010

Silver

53

16

19

--

88

Gold

2011

Silver

8

11

5

7

31

13

28

11

10

61

In addition to EPEAT we are also eagerly applying for voluntary environmental labeling or accreditation in a number of countries around the world, including accreditation for energy saving from the China Standard Certification Center, China’s Ten Central

Certification, Taiwan’s Green Mark, and TCO certification. Attaining certification is an important way of proving our commitment to environmental protection.

Environmental and Energy Management

2011 Acer Corporate Responsibility Report

Advancing Eco-Efficiency of Product

Packaging

Acer product packaging design aims to reduce all areas of environmental impact by taking a “whole life cycle” approach. We do our best to reduce packaging material, use recycled materials and restrict hazardous substances, while adopting sustainable packaging principles to guide the design of our product packaging.

These principles include:

• Functionality

• Increased efficiency of resource usage

• Recyclability

• Consideration of both user- and environmental-friendliness

We have initiated corresponding actions for each of our product lines to reduce the use of paper and packaging.

• Tablet PC: From August 2011, instead of providing paper with printed instructions on starting the computer, we now provide this information on a document that can be downloaded from our website.

• Notebook PC: From 2010, we reduced the use of manual pages by 80%, downsizing from 102 pages to 12 pages.

• Desktop PC: From 2007, European and US regions no longer provide a user’s manual and have reduced the weight of paper used in other documents from 80 grams to 70 grams.

• Monitors: From September 2010, user’s manuals are no longer provided for 95% of monitor products; from 2011 over 40% of

LED monitors were packaged with cardboard of new design which reduces overall packaging volume by 40%.

To attain our goals for using reusable packaging materials, all external packaging of notebook PCs is made from recycled paper and from 2009 all notebook PCs have been wrapped in reusable felt.

We are currently in the process of formulating our Sustainable

Paper and Packaging Policy, which will serve as a guideline for future paper procurement and design product packaging. We support international stakeholder organizations that advocate bans

To further implement sustainable packaging principles, we will soon introduce a glue-free cardboard design for the packaging of our

Tablet PCs to make recycling easier for consumers and to attain our goals for reducing the use of paper.

Product Recycling

All electronic products have a certain lifetime and waste electronic products can potentially degrade the environment if they do not undergo appropriate treatment. Acer strives to put environmental considerations into product design not only by designing environmentally friendly products that are easy to recycle, but also by providing consumers with convenient recycling channels through voluntary recycling schemes that comply with legal requirements.

We support Individual Producer Responsibility (IPR), and pledge to work together with government, consumer and retailer stakeholders in shouldering responsibility for the recycling and management of e-waste.

on illegal felling of forests, and Acer explicitly forbids cooperation with suppliers involved with such felling. To this end, we are also expanding our use of products from responsible forest management systems.

We are gradually introducing paper products that have been certified by related sustainable forest systems such as Forest

Stewardship Council (FSC) certified paper. Starting in the second quarter of 2012, we will take the lead in using FSC-certified paper for instruction manuals for our Notebook and Tablet PCs. Our staff is becoming more aware of paper conservation concepts when using office paper for printing, and we are further reinforcing these concepts by gradually expanding our use of FSC-certified printing paper to promote the ideals of sustainable forest management.

North America

We are continually working to expand voluntary recycling channels in North America to ensure consumers have greater convenience and peace of mind when recycling end-of-life products. In 2010 we launched new recycling partnerships with E-World Recyclers and

AERCCR. The expansion of these partnerships in 2010 and our participation in the eCycling Leadership Initiative in 2011 to boost voluntary recycling in the United States resulted in an increased recycling rate in 2011 compared to 2010.

Acer Canada recycled both waste computer products and batteries, continuing cooperation with Phoenix Recycling and the Rechargeable Battery Recycling Corporation (RBRC), while expanding our partnership with GEEP into British Columbia in 2011.

In 2011, Acer America expanded the scope of its voluntary recycling plans by participating in the Consumer Electronics Industry’s Billion

Pound eCycling Challenge, which was launched as a collaborative effort among IT manufacturers, administered by the Consumer

Electronics Association (CEA) , to conserve resources, protect the environment and increase efficiency. Acer America participated in a pilot project in two states, using a third-party accredited recycling firm to ensure responsible recycling. The recycling target for the project was set at 686,000 pounds, but in the end we actually recycled 724,464 pounds, showing a 655% increase over the

Product Design that Incorporates Environmental Considerations

28

Environmental and Energy Management

96,000 pounds recycled by Acer America in 2010. In 2012, we will continue to participate in the pilot project in these two states, upping the target by 25% while adding on another pilot project in two other states.

Acer continued its partnership with Best Buy in supporting their instore recycling program . Originally Best Buy charged customers

US$10 for collecting, transporting and responsibly recycling endof-life products. In return Best Buy offered a US$10 gift card. Since

Best Buy discontinued this system in November 2011, Acer has made recycling completely free for all of Acer-branded products, reimbursing Best Buy for recycling fees.

2011 Acer Corporate Responsibility Report

Acer America requires that all recycling schemes ensure appropriate disposal and management of end-of-life electronics devices, components and materials. In 2011, Acer America continued its transition to working only with recycling firms that have obtained environmental management system certification such as

Responsible Recycling (R2) or eStewards. We plan to complete this transition in the United States and Canada in 2012.

Acer continues to request that all suppliers and second tier suppliers comply with Acer waste disposal standards for the management of end-of-life products. In 2011 Acer launched a recycling firm auditing program to ensure full command of our recycling firm’s onsite treatment operations. The audit plan had both Acer recycling program administrators and third party auditors target our first-tier electronic waste treatment firms as well as downstream treatment firms. The audit checks for compliance with Acer’s Standards for

Electronics Recycling as well as environmental, safety and health performance to ensure that all Acer products handed over by consumers for recycling receive appropriate treatment.

Thanks to impeccable recycling channels, in 2011, Acer recycled a total of 9,307,573 kg in North America, exceeding our original target by 6%.

For more information on Acer America’s recycling program, please visit Acer America’s recycling website .

Europe

Acer partakes in recycling and waste-reduction design of products, batteries and packaging in Europe by keeping in compliance with all

EU regulations including the European Union Waste Wlectrical and

Electronic Equipment Directive (WEEE). For more information on recycling channels in Europe, please refer to Acer websites in each of the European nations.

Asia Pacific

Acer promotes voluntary product recycling services throughout several countries in the Asia Pacific region, including Indonesia,

Taiwan, Japan, and Malaysia, providing consumers several recycling options such as postal service or drop-off stations.

India

We have promoted the Acer India e-Waste Program for several years, inviting consumers to ensure the appropriate recycling of end-of-life Acer products. The program makes sure that a certificate is sent back to the consumer to verify completion of the product recycling treatment process.

29

Product Design that Incorporates Environmental Considerations

Environmental and Energy Management

2011 Acer Corporate Responsibility Report

Taiwan

For many years Acer Taiwan has recycled Acer products through participation in the recycling and treatment system administered by the Executive Yuan’s Environmental Protection Administration

(EPA). The following chart shows the estimated recycling volume of

Acer products in Taiwan according to the EPA Resource Recycling

Fund’s annual recycling volume for waste IT products in the Taiwan area.

From mid-2010 Acer Taiwan installed waste mobile phone recycling bins at 25 service locations throughout Taiwan to make it easier for customers to recycle their old mobile phones. By the end of 2011 we collected a total of 86 mobile phones for recycling. From mid-

2011 we saw an increase in the number of notebook PC batteries collected for recycling with 516 batteries collected in just half a year.

Year

2006

2007

2008

2009

2010

2011

Recycled computers

73,261

77,763

96,652

104,012

159,243

207,871

Recycling rate (%)

31.20%

29.80%

29.47%

26.28%

35.75%

37.72%

Volume recycled

(tonnes)

869

876

1,089

1,158

1,801

2,361

Japan

Acer Japan works in cooperation with the local PC3R Promotion

Association which allows consumers to register through the Japan recycling website , via email or fax, after which they can send their waste products through the postal system for recycling. Statistics for the year 2011 showed that a total of 12,962 computers of the three brands Acer, eMachines and Gateway had been received for recycling, amounting to a total volume of 139,873 kilograms.

Product type Category

Desktop PCs

Notebook PCs

Commercial

Consumer

Total

Commercial

Consumer

Total

Commercial

Consumer

CRT Monitors

LCD Monitors

Total

Commercial

Consumer

Total

[

Includes integrated desktop PCs

Volume recycled

(kg)

1,403.70

36,554.10

37,957.80

56.4

2,420.20

2,476.60

1,288.50

23,919.10

25,207.60

78

4,216.50

4,294.50

Australia

Acer Australia signed on to become a member of the Australian

Packaging Covenant (APC) in 2011. The APC is a voluntary initiative by government and industry that utilizes cooperative methods to reduce the environmental impact of packaging through effective life-cycle management.

We will be unfolding a new action plan in 2012 that adopts the

Sustainable Packaging Guidelines, featuring design, recycling and management methods that reduce the environmental impact of packaging:

• Design: more efficient use of resources to reduce environmental impact without impinging on product quality and safety.

• Recycling: effectively collect and recycle used packaging materials.

Units

120

3,125

3,245

22

944

966

71

1,318

1,389

16

865

881

Volume of treated resources (kg)

Volume of resources reused

(kg)

Reuse rate (%)

37,957.80

32,393.60

85.30%

2,476.60

25,207.60

4,294.50

1,535.40

20,295.30

3,351.80

62.00%

80.50%

78.00%

• Product stewardship: promise to improve packaging design and recycling so as to reduce the impacts of waste.

Recycling Activities

Acer Malaysia used computer donation event

In 2011 Acer Malaysia and Microsoft cooperated on a technology education CSR project called “I’m Inspired,” which encourages consumers to recycle old computers. Old computers can be dropped off at designated consignees and computer expositions in return for a 200 Malaysian ringgit voucher toward the purchase of a new computer.

The event lasted from March 23 to April 17, during which we collected a total of 787 used computers. From these we refurbished

65 Acer computers and installed software donated by Microsoft.

Product Design that Incorporates Environmental Considerations 30

Environmental and Energy Management

2011 Acer Corporate Responsibility Report

The computers were donated to non-governmental organizations including The St. Nicholas’ Home in Penang, The Grace Community

Home in Klang and Peyakin.

Grace Community

Peyakin

St Nicholas' Home

Acer America e-Waste Recycling

Event

From 2009, Acer Services Corporation in

Texas, US, cooperated for three consecutive years with Cinco Electronics Recycling and

Kennedy-Powell Elementary School in the town of Temple, Texas, to hold an e-waste recycling activity providing a convenient recycling channel for residents in the

Temple area. The event recycled a total of five tonnes of electronics waste, ensuring this waste would receive appropriate treatment and not enter landfills.

31 Energy and Climate Change Response

Energy and Climate Change

Response

Climate change is at once both risk and opportunity for the ICT industry. The industry must not only work to reduce its own emissions, but also must stay attuned to the risks climate change pose to its operations, while creating opportunities for other sectors to apply ICT toward carbon reduction initiatives. Several natural disasters have already had a devastating impact on PC manufacturers and supply chains in 2011, signs that climate change has already become the biggest risk management issue for the industry. Acer is mitigating the impacts of climate change on the industry through the adoption of practical countermeasures.

Climate Risk Preparedness

Staying abreast of climate risks has long become an important task for Acer in terms of managing the supply chain and maintaining value. A case in point is when hard drive supplier Western Digital's

Thailand factor was impacted by floods in October 2010 and unable to provide a steady supply of goods. We immediately took action by closely monitoring the supply of goods and adjusting our product strategy to minimize impacts on our financial affairs. We now consider climate risk an integral part of our long-term strategy to help buffer the impacts of extreme weather events on our supply chain.

Greenhouse Gas Inventory

Organizational Greenhouse Gas Inventory

We have been keeping greenhouse gas inventories since 2008.

Over these four years we have gradually expanded the scope and level of implementation and have strengthened our experience and capacity in data collection, management and analysis. We believe that only by being fully aware of the greenhouse gas emissions generated by our operations can we know the best course of action to make reductions.

The total greenhouse gas emissions from worldwide offices and operations in 2011 amounted to 53,008.78 tonnes of carbon dioxide equivalents, which is further divided into three scopes. Scope 1 emissions are mainly fuel combustion and fugitive refrigerants.

Scope 2 comprises the largest contributor of emissions at 73% of the total, and are the indirect emissions from the electricity used to operate our offices and points of operation. Scope 3 emissions are transportation related emissions caused by the airplane travel of our staff, and accounted for 15% of total emissions in 2011.

7,901.35

15%

6,344.80

12%

38,762.63

73%

Scope 1

Scope 2

Scope 3

2011Greenhouse Gas Emission form Worldwide Operations

(Unit: Tonnes of Carbon Dioxide Equivalents)

Every year we review inventory boundaries to confirm that all of our operations are performing data collection and statistical compilation as required within the applicable organizational boundaries delineated by the operational control approach of the GHG Protocol.

We additionally review the correlation between the content of operations and the operational control principles of our operations so as to reconfirm the actual boundaries of our GHG inventories.

After discussion with a third party accreditation agency in 2011 we verified that a lease relationship exists between Acer e-Enabling

Data Center operations services and clients. As a result we readjusted our inventory boundary to proportionally divide all of the eDC electricity use into two parts: emissions generated from the client’s independent electricity use is categorized under the client’s

Scope 2 emissions, while emissions generated from non-client independent electricity use is categorized under Acer’s Scope 2 emissions. This boundary adjustment created a major difference in our overall emissions and thus we started back at the baseline year to recalculate GHG emissions of global operations from 2009 to

Environmental and Energy Management

2011 Acer Corporate Responsibility Report

2011, as shown in the following chart.

60000

49,237.63

50000

40000

42,860.32

2,900.97

5,453.18

30000

36,754.66

40,279.77

20000

53,008.78

7,901.35

38,762.63

10000

0

3,204.69

2009

3,504.68

2010

2009-2011 Acer’s global GHG emissions from offices and other operations.

(Units: tonnes of carbon dioxide equivalents)

6,344.80

2011

Scope 1

Scope 2

Scope 3

GHG Reduction

Setting GHG Reduction Targets

Beyond our continuous work in upgrading energy efficiency of our products and operations, we have also set long-term goals for energy usage reduction. This been done bearing in mind both the interests of our stakeholders and the feasibility of the goals, and we hope that this concrete demonstration of leadership will inspire our suppliers and partners to follow suit, creating a greater effect as the reductions accumulate across the supply chain. We aim to meet these goals through internal energy efficiency upgrades, investments in renewable energy, and procurement of green energy. We firmly believe that GHG reductions are only possible through cooperation between private and public sectors, which is why Acer has always supported the two GHG absolute reduction targets set forth by the EU, that is, for industrialized nations to reduce emissions 30% (with 1990 as the baseline year) by 2020 and 50% by 2050. We also urge developing countries to transcend the thinking that environmental costs can be ignored when seeking economic growth, and that they should develop their nation’s potential to become a low carbon society.

PLAN

A.B.C

Aspire S3

Ultrabook

CO

2

GHG Reduction Case Study

Recording energy consumption of 1,200,000 kWh in 2011, Acer

Germany took the lead in procuring certified renewable energy to offset all 649 tonnes of carbon dioxide equivalents from energy consumption. This offset plan won the TÜV NORD certificate and became the highlight of Acer

Europe as the first carbonneutral initiative for power consumption. From October

2011 Acer Italy cooperated with the local E-Piu renewable e n e r g y s u p p l i e r t o u s e green power, while saving approximately 800 tonnes of carbon dioxide equivalents and 12.5% of electricity costs.

In 2011, Acer Japan made a temperature-sensitive calendar for consumers and clients to help them determine whether their air conditioner is set at an appropriate temperature. For example, if the air conditioner thermostat is set lower than 28 degrees Celsius from June to September, or if the heater is set higher than 20 degrees from

November to March then the dates on the calendar will become illegible. The calendar serves as a reminder for users to pay attention to thermostat settings and join in the effort to conserve energy and reduce carbon emissions.

Acer Australia works in cooperation with Carbon Neutral by promoting tree planting projects in western and southern Australia.

Through this program a total of 133,948 native trees such as eucalypts and acacias, and 851 shrubs were planted between

2008 and 2011. Assuming a life span of 100 years, these trees will sequester 29,760 tonnes of carbon dioxide equivalents.

Acer Taiwan headquarters' office renovation is scheduling the transition to environmental building materials, such as energy saving lamps and automatic shut-off systems on lights to achieve energy-saving targets. In 2011 Acer Taiwan participated in several

Energy and Climate Change Response 32

Environmental and Energy Management

2011 Acer Corporate Responsibility Report energy saving improvements including the renovation of office illumination equipment, expansion of the existing automatic light shut-off system, and replacement of LEDs in the headquarters building logo sign. These measures add up to an annual electricity savings of 211,000 kWh, equivalent to 129.6 tonnes of carbon dioxide equivalents.

We aim to exert a positive influence on our neighbors by promoting a public area for energy conservation and carbon reduction at the

Acer Taiwan headquarters building and the nearby Dongke Building.

By 2011, the park’s 1-3 building public space and underground parking lot had already replaced all lights with energy saving lamps, an annual savings of 200,000 kWh, or 122 tonnes of carbon dioxide equivalents. We also installed infrared motion detectors and automatic shut-down systems in the escalators of all Acer buildings, saving approximately 4,500 kWh each year and 2.8 tonnes of carbon dioxide equivalents.

As for staff transportation, we encourage the use of mass transit systems to reduce the carbon emissions of individually driven motor vehicles. In 2011 we began planning an internal carpool system, which will be on the roads in 2012. In the renovation of our company cars, we have procured certified energy-saving vehicles.

consumption standards and provided clients with the most energy efficient service.

While maintaining the operation of our renewable energy generation systems, we also look for ways to improve the efficiency of existing operations. For example, in 2011 we launched a project to reduce the escape of air from our air conditioners and increase the efficiency of air circulation by adding an air conditioner system with a valve to control the intake of return air. Upon installation the system effectively increased airflow by at least 10%. Just one system has already saved 1.7 kW, and it is estimated that over

900,000 kWh can be saved each year as well as over NT$2 million in electricity fees – truly a win-win situation both economically and environmentally.

Acer e-Enabling Data Center

A data center can be a considerable power consumer as it must maintain system stability 24 hours a day. Since its establishment,

Acer e-Enabling Data Center has surpassed industrial energy

33 Energy and Climate Change Response

Product Innovation

Increased energy efficiency and lightweight design of our products are continuously sought-after goals, evident in our Aspire One series, the Energy Star compliant Aspire Timeline series, and the

Aspire Timeline X series, which sports a battery that can provide continuous power for up to ten hours.

In the latter half of 2011, we satisfied consumer demands for rapid start-up, internet connection and portability with the introduction of the Ultrabook Aspire S series. This model is under 1.35 kg and features a unique heat dissipation and ventilation system as well as a lightweight exterior and the capacity to maintain continuous stand-by for up to 50 days, far surpassing former standards. Due to this new Acer technology, each Ultrabook saves approximately

3.5 kg of carbon emissions compared to traditional notebook computers. If five million Ultrabooks were to replace traditional notebook computers, the result in terms of carbon reduction would be equivalent to planting 1.45 million trees!

The Ultrabook Aspire S series uses smart energy-saving technology to greatly increase battery longevity; this technology enables batteries to be recharged 1000 times, a 3.3-fold increase over the

300 charges of standard lithium batteries. In terms of environmental impact, assuming sales of 5 million units, the savings would be equivalent to some 975.5 trees worth of carbon equivalents.

Lighter

The Acer Aspire S3 uses open-cell display technology, not only making the notebook lighter, but also reducing the metal used by

32.5 grams, thus saving 68.81 kg in carbon dioxide emissions, or approximately 28.67 million trees’ worth in carbon equivalents!

In addition, the aluminum and magnesium used for the case are

100% recyclable, further reducing the environmental impact of the

Aspire S3.

Energy Consumption Comparison

Acer Aspire S3

Normal Use: 6 W/h

Sleep Mode: 0.28 W/h

Hibernation: 0.015 W/h

VS

Traditional Notebooks

Normal Use: 8 W/h

Sleep Mode: 0.35 W/h

Hibernation: 0.03 W/h

Air enters through spaces between keys in the keyboard to directly cool down hot components, and make the most efficient use of overall power consumption.

Smart design concentrates heat sources and diverts heat more effectively.

Responsible

Supply Chain

We realize the important role that a branded company has to play in the social and environmental impact of its suppliers. Acer not only demands that all of its suppliers operate within local regulations and according to Acer’s own in-house policies, but also informs suppliers about the latest trends in social and environmental responsibilities so they can build their capacity to meet the challenges of sustainable development. We conduct risk management and on-site factory inspections for our suppliers in order to improve their general capabilities and to ensure that worker rights are protected, and continue to encourage our suppliers to actively manage their greenhouse gas emissions by responding to our Carbon Disclosure Project Supply Chain Program questionnaires and joining the

EICC Carbon Reporting System. Acer also holds conferences and training courses with our suppliers’ greenhouse gas reduction working teams to expand the overall effectiveness of greenhouse gas reduction efforts. We are grateful to all of our partners for working conscientiously with us to build a supply chain that encompasses social and environmental responsibilities. Acer regularly conducts full and careful reviews of applicable sustainability issues and intends to be even more active and visionary in reinforcing the positive impact of a socially and environmentally responsible supply chain.

Conducts on-site audits for

40

suppliers.

2011 Acer Corporate Responsibility Report

34

2011 Acer Corporate Responsibility Report

Responsible Supply Chain

Supplier Social and Environmental

Management

Acer understands well its own corporate social and environmental responsibilities and knows that this extends to influencing and improving the performance of its suppliers with regard to their own social and environmental responsibilities. We therefore work closely with our suppliers to set out management practices and implement a multilateral approach to improving their capabilities.

In 2008, Acer joined the Electronic Industry Citizenship Coalition

(EICC) and has been enthusiastically participating in EICC events and activities since then. EICC participation has helped us to understand the latest international approaches to implementing corporate social responsibility and to share practical experience with fellow members. Acer has adopted the EICC code of conduct to guarantee that the manufacturing operations of our suppliers accord with their social and environmental responsibilities, and that their employees are treated with respect and dignity. We also require our Tier 1 suppliers to adopt the same code and encourage them to fulfill their corporate social responsibility. This will hopefully spur to promote the code of conduct among their own suppliers and play a part in raising working conditions in global electronics supply chains.

In its management of suppliers Acer has adopted a trilateral approach. First, Acer suppliers must sign our Declaration of

Compliance with Acer Supplier Code of Conduct and undertake a self-assessment in order to better understand what implementation of social and environmental responsibilities actually entails.

Second, Acer is a participant in the EICC’s Validated Audit Process

(VAP) and also uses third party verification agencies to audit suppliers’ premises to ensure that they are fulfilling their social and environmental responsibilities. Third, we hold regular conferences with our suppliers to enhance their ability to respond effectively to the demands made upon them. Acer will continue to work with suppliers on social and environmental issues in order to build a supply chain based on principles of sustainable development.

On-site Audits

Acer is committed to promoting social responsibility by improving the labor rights, business ethics, environmental safety and health practices of the electronics industry supply chain. We have carried out EICC on-site audits for 40 higher risk suppliers in 2011 and taken corrective actions for issues found.

Compliance of the EICC code of conduct

82%

L&E MS

85%

Environment

87%

Health & Safety

92%

Labor

92%

Ethics

93%

H&S MS

Compliance Major Non-compliance

11% 6%

1% 14%

6% 6%

4% 4%

6% 2%

4% 3%

Minor Non-compliance

35 Supplier Social and Environmental Management

Responsible Supply Chain

Follow-up and Response

Audits of 40 suppliers showed the top five areas of non-compliance were: Working Hours, Child Labor Avoidance, Fair Business, Advertising and Competition. Other areas of particular concern were Plan Implementation, Improvement Objectives, and Industrial Hygiene.

Top five areas of non-compliance

Category

EICC

Provision

Compliance Minor Major Issue Acer response

L & E

Management

System

Labor

Labor

Improvement

Objectives

Young

Workers

Working

Hours

71%

80%

82%

10%

20%

15%

19%

0%

2%

Suppliers are not implementing the appropriate procedure to establish performance objectives and implementation plans of labor and ethics.

Young workers exceeded the prescribed limit for overtime hours.

( overtime exceeding 3 hours per day or 36 hours per month)

Workers exceeded the prescribed limit for overtime hours and worked an average of seven days without a day off.

We require suppliers to develop specific labor and ethical performance objectives and implementation plans according to procedures, and implement and maintain records.

We require suppliers to establish an overtime warning function in their staff management system and propose a working hours management and improvement plan. We also require suppliers to improve their change of shift and hire more workers to solve overtime problems.

We require suppliers to establish a warning function in the staff management system and propose a rest management and improvement plan. We also require suppliers to improve their work shift planning and hiring in order to solve overtime problems.

Ethics

Fair

Business,

Advertising and

Competition

82% 18% 0%

Ethics and intellectual property protection procedure is not established.

We require suppliers to build up a procedure of ethics and intellectual property protection, and implement and maintain records.

Health and

Safety

Industrial

Hygiene

79% 7% 14%

Personal protective equipment missing or is not used (e.g no radiation meters; workers not wearing goggles, masks and appropriate protective gloves at glue station; earplugs not used in airconditioned room (noisy area), gloves not worn at tin furnace station; workers at ultrasonic wave bonding station not wearing earplugs.)

We have told suppliers that workers must wear the required personal protective equipment and receive risk education to ensure the proper use of personal protective equipment as well as monitoring by managers and supervisors.

2011 Acer Corporate Responsibility Report

Validated Audit Process, VAP

The EICC Validated Audit Process (VAP) is jointly managed by

EICC and GeSI and is conducted by independent audit managers who have full control over audit procedures, tools employed, and audit results. This ensures that each audit is of consistent quality.

Acer has been participating in VAP since 2010, and has been urging our suppliers to also adopt VAP audits. Always having a valid audit report will reduce the burden of having to undergo audits for different clients.

EICC and GeSI jointly run a Labor & Ethics Lead Auditor

Course in accordance with requirements of the International

Register of Certificated Auditors. We believe that participation in such a course can increase our understanding of VAP and enhance the quality and effectiveness of our audits. To this end, in the 3rd quarter of 2011 we were able to persuade the only organization in the world offering this kind of training – Verité – to hold a course in Taiwan. The workshop covered social systems auditing, investigative skills, management systems, validation and reporting, and the EICC-GeSI Audit Process. The instruction included case discussions, practice questions, and role playing.

We also invited our suppliers to take the workshop with us in order to raise auditing competence and quality throughout our supply chain. Seven suppliers did send staff from different departments

– personnel, purchasing, auditing, factory management, and corporate social responsibility (CSR) – to participate in the course. Having the viewpoints of different departments during the discussions and experience-sharing sessions was invaluable in helping us understand the practical problems and solutions involved in social and ethical auditing.

On-Site Audits

36

Responsible Supply Chain

2011 Acer Corporate Responsibility Report

Response to Conflict Mineral

We are deeply concerned about the social and environmental issues related to the materials contained within product parts and to the manufacturing process. The rich mineral resources in the Democratic Republic of Congo (DRC) have fueled one of the world’s deadliest conflicts. We understand that most of our suppliers do not have direct purchasing relationships with mining companies.

There are often multiple sources for metals including recycled metal, metal inventories and crude ore. However, we understand we have the opportunity to have a positive impact on this complex issue as an individual company, and we support the legislation of related regulations.

Our Commitment

Acer is committed to ensuring that working conditions in its supply chain are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and ethical. As a result of this overarching commitment, Acer will not accept any supply chain activities in the DRC or adjoining countries that fuel conflict of tantalum, tin, tungsten, and gold. Acer supports the conflict mineral provisions contained within the Dodd-Frank Wall

Street Reform and Consumer Protection Act (H.R. 4173), and will support similar requirements in other regions of the world. Acer commits itself individually and through participation in the EICC/

Global e-Sustainability Initiative (GeSI) Extractives Working Group to support EICC/GeSI due diligence programs, OECD due diligence guidance and piloting, smelter audit and verification programs, inregion sourcing schemes, and engagement with stakeholders for collaboration and efficiency. Acer understands that a certification program may be a necessary solution in the future. Acer will support a certification process should all the relevant stakeholders agree to go down that path. In the meantime, Acer will continue to support the audit and verification programs established by the EICC and GeSI.

Our Actions

Since 2009, Acer has engaged its suppliers to educate them on the issue and begin tracing its supply chain back to the source of cobalt, gold, palladium, tantalum, tin, and tungsten. Along with the survey, we also provided our suppliers with references including usage, major producers and consumption in the electronics industry of the minerals in question. The survey took six months and the response rate from our suppliers was over 90%. This engagement has given Acer an initial understanding of its supply chain with respect to these metals, and has prepared the foundation for future management of mineral sources. It has also helped us understand that only through industry collaboration can we be successful in managing mineral sources.

In 2010, Acer began participation on the EICC/GeSI Extractives working group and Extractives Due Diligence sub-working group.

Acer contributed to the development of the Conflict Minerals

Reporting Template tool (Template), which facilitates disclosure and communication of information regarding smelters that provide material to a company’s supply chain. Acer also participated on the

Template pilot by conducting a test-run with Acer’s suppliers and gathering feedback for further refinement of the Template.

We adopted EICC/GeSI Due Diligence Template tool to investigate which companies refine our supply of tantalum, tin, tungsten, and gold in 2011. However, we also encountered problems during our survey, particularly related to the uncertainty about the accuracy of received information, for example the names, locations and products of smelting plants. The preliminary analysis indicated the companies that refine gold, tantalum, and tin are mainly located in China, Japan and USA. Tungsten, on the other hand, is located mainly in China and Indonesia. We’ll continue to cooperate with the EICC/GeSI Extractives working group to support EICC/GeSI

Conflict-free Smelter (CFS) Program.

Supplier

200

150

100

50

Sn

0

Hong Kong

Russia

Singapore

Brazil

Germany

United States

Korea

Peru

Bolivia

Malaysia

Japan China

Supplier

25

20

15

W

10

5

0

Austria

Germany

Russia

Taiwan

Canada

Korea

United States

5

4

3

2

1

0

Supplier

8

7

6

Israel

Kazakhstan

Korea

Philippines

Russia

Switzerland

Thailand

Germany

Australia

Japan

Japan

China

China

United States

Ta

37 Response to Conflict Mineral

Responsible Supply Chain

2011 Acer Corporate Responsibility Report

60

40

20

0

Supplier

120

100

80

Au

Britain

Spain

Malaysia

South

Africa

Chile

Indonesia

Canada

Switzerland

Korea

Singapore

Taiwan

Australia

Japan

China

California Transparency in Supply

Chains Act

In 2010 the California Transparency in Supply Chains Act of 2010

(SB 657) was passed and will go into effect on January 1, 2012.

This law requires large retailers and manufacturers who do business in the state of California and have annual gross worldwide sales of over $100 million U.S. dollars to be transparent about the efforts they have undergone to eradicate slavery and human trafficking in their supply chain.

As Acer is a member of the EICC, we require our suppliers to abide by the EICC code of conduct, especially with regards to their workforces. The EICC code of conduct specifically forbids malpractices such as using forced labor, underpaid labor, involuntary prison labor, or binding workers to unreasonable contracts. Acer also conducts risk management, on-site factory inspections, training courses, and other management procedures to ensure that our suppliers’ manufacturing operations accord with Acer’s social and environmental responsibilities. The EICC also has a Freely Chosen

Employment (FCE) task force that makes recommendations based upon the California Transparency in Supply Chains Act and has been aiding us in adopting best practices. We have adopted the following measures to prevent the possibility of any of our suppliers engaging in forced labor or human trafficking:

Acer requires all employees to comply with the Acer Group

Standards of Business Conduct (SBC). The SBC includes provisions relating to supply chain issues, including the use of child and forced labor. Any offense or violation against the articles in the SBC will result in corrective action proceedings according to the gravity of the offense committed. Serious offenders will face disciplinary action or be asked to leave the company accordingly.

This set of standards is the highest-level behavioral criteria for all

Acer employees engaged in corporate activities and is incorporated in our employee performance assessments. Furthermore, all new employees are enrolled in orientation training and asked to honor these behavioral requirements when they first join the company.

Supplier Risk Assessments

Acer’s suppliers’ risk assessments are based on the following:

• The results of the suppliers’ self assessment performance

• The degree of risk associated with the location of the factory

• The nature of the business relationship between Acer and the supplier

• The results of previous audits

Acer also takes into account the primary concerns of all of the stakeholders involved.

Supplier Declaration

Acer requires all components suppliers to sign our Declaration of Compliance with Acer Supplier Code of Conduct. Suppliers must not only provide us with relevant information on social and environmental responsibilities, but must also verify that their own and their suppliers’ operations conform to Acer’s human rights standards, meaning that their workers are treated with respect and dignity.

EICC Code of Conduct v4.0

A.1 Freely Chosen Employment

Forced, bonded (including debt bondage) or indentured labor; involuntary prison labor; slavery or trafficking of persons shall not to be used. This includes transporting, harboring, recruiting, transferring or receiving vulnerable persons by means of threat, force, coercion, abduction or fraud for the purpose of exploitation. All work must be voluntary and workers shall be free to leave work at any time or terminate their employment. Workers must not be required to surrender any government-issued identification, passports, or work permits as a condition of employment. Excessive fees are unacceptable and all fees charged to workers must be disclosed.

Supplier Audits

After the risk assessment – based on the above criteria – has been conducted, Acer then draws up a list of suppliers that require an on-site social and environmental responsibilities audit to be undertaken by an accredited 3rd party verification agency. We also take part in EICC’s VAP.

Adopting a variety of audit models allows us to see the strengths and weaknesses of each model and more accurately uncover discrepancies in our suppliers’ implementation of their social and environmental responsibilities. We can then suggest what improvements can be made.

Supplier Training

In order to fulfill our responsibility to educate our suppliers so that they can remain abreast of the latest international trends, during the 3rd quarter of each year Acer holds its Supplier Conference for CSR. The conference provides an opportunity to discuss the latest international trends as they affect supplier social and environmental responsibilities.

During the conference we examine the EICC code of conduct, which forbids malpractices such as using forced labor, underpaid labor, or involuntary prison labor, and binding workers to unreasonable contracts.

We will continue to communicate and cooperate with our suppliers in the future as we know that combining resources is the best way to effectively improving each aspect of our mutual social and environmental responsibilities.

California Transparency in Supply Chains Act

38

Responsible Supply Chain

Supplier Greenhouse Gas

Management

Acer has set its own greenhouse gas reduction targets and is working assiduously to incorporate energy conservation and emissions reduction throughout our operations and product designs. We are also using the weight of our influence as a large branded corporation to organize a greenhouse gas working group among our major suppliers. This team conducts regular carbon data tracking, which is a valuable aid to cultivating the greenhouse gas management capabilities of our suppliers. In addition, Acer is also participating in a number of external carbon reduction-related initiatives that when internalized should prove useful in facilitating a greener, low-carbon supply chain.

Carbon Disclosure Project – Supply Chain

Program and EICC Carbon Reporting

System

In 2011 Acer continued to require that our major suppliers take part in our Carbon Disclosure Project – Supply Chain Program. A total of 74 suppliers were asked to submit questionnaires through an online response system, attaining a response rate of 97%. This compares very favorably with the global supplier response rate of 44% and clearly reflects the enthusiastic attitude that Acer and its major suppliers have towards responding to climate change.

The figures for data disclosure and performances also exceed the average global rates for suppliers in the Carbon Disclosure Project.

Acer intends to continue improving supplier carbon disclosure and actual performance figures. We will also continue to ask our Tier 1 suppliers to participate in the EICC Carbon Reporting System and, through participation in international mainstream external initiatives, getting a firmer grip on the trends and requirements of international carbon disclosure.

Supply Chain Greenhouse Gas Working

Group

Acer will continue collecting emissions data from the Supply Chain

GHG Working Group. In 2011 our Tier 1 suppliers of smart handheld devices, projectors, and monitors were included in the Supply Chain

GHG Working Group, and the scope of carbon disclosure was expanded to include Tier 2 suppliers. In the new scheme, suppliers are now extending carbon inventory to upstream manufacturers.

We also continue requesting our Tier 1 suppliers to send in quarterly greenhouse gas emissions data for all Acer products they manufacture or assemble. This includes their own emissions data, plus that of Tier 2 suppliers – such as key component manufacturers

– that they deal with. We also intend to begin requesting our major suppliers to draw up mid- and long-term carbon emissions reduction plans and to regularly compile data on their emissions reduction performances so that we can build up a complete picture of carbon reduction results for the whole of our supply chain.

39 Supplier Greenhouse Gas Management

2011 Acer Corporate Responsibility Report

Employee Welfare and Advancement

Acer strives to create a high-quality working environment, promote a work-life balance program, care for employees’ physical and mental health, provide competitive compensation, and upgrade employees’ professional abilities and career development through systematic training and staff development projects.

Provided education and training for

7,921

people worldwide, accounting for over

62,000

hours of training time.

2011 Acer Corporate Responsibility Report

40

2011 Acer Corporate Responsibility Report

Employee Welfare and Advancement

Staff Structure

Employment

At the end of December 2011 Acer employed 7,894 persons worldwide, including 202 managers, 7,036 professionals, and 656 administrators. Their average age was 37.2 years and average seniority was 5.4 years.

Recruitment

In our recruitment of staff around the world, we observe labor laws in the relevant locations and recruit mainly local personnel, holding to the principle of equal opportunity and carrying out recruitment

Female 34%

Staff Structure by Gender

Administrators

8.3%

Staff Structure by Job Category

Male 66%

Managers

2.6%

Professionals

89.1% through open selection procedures with no discrimination by race, gender, age, religion, nationality, or political affiliation. The hiring of child workers is forbidden. The right personnel are hired for the right jobs, and a diverse range of personnel are recruited for Acer worldwide. A total of 137 new personnel were recruited in 2011.

Competitive Compensation

Compensation

Competition in the global market for technology products is intense, and so is the competition for personnel; to recruit and retain quality personnel, therefore, we offer competitive compensation. In

41~50

19.8%

30 and Under

21.0%

Staff Structure by Age

Americas

10.1%

China

13.3%

Asia Pacific

18.9%

Staff Structure by Location

50 and Over

3.4%

31-40

55.8%

Taiwan

33.5%

EMEA

24.2% formulating our compensation policy, we consider the requirements of local labor laws at our global locations and consult compensation surveys carried out in various parts of the world by consulting firms to assure that the total compensation packages we offer are competitive in the local manpower markets. Depending on our profitability and the performance of units and individuals, we pay bonuses to reward outstanding personnel; in the Taiwan area, for example, we provide performance bonuses and profit sharing for our employees.

Acer sets its compensation policy according to the following principles:

• Equal consideration of shareholder and employee interests.

• Ability to attract and retain outstanding personnel.

• Provision of suitable incentives to reward personnel who make remarkable contributions to Acer.

Employee Welfare

Besides providing basic welfare as required by law, we also provide group medical insurance and other employee benefits in accordance with local custom and practice. The Taiwan area’s employee welfare committee, for instance, provided the following three types of benefits in 2011:

1. Leisure and entertainment

The company provided numerous choices of activities for employee and family participation, including 2- and 3-day trips in which more than 10,000 family members participated, allowing employees to relax in body and mind and have fun with their families. Subsidies for self-arranged leisure activities were also provided, allowing employees to choose their own leisure activities to stimulate balanced physical and mental development.

41 Staff Structure

2011 Acer Corporate Responsibility Report

Employee Welfare and Advancement

2. Fellowship activities

Expenses are provided to different departments for the establishment of facilities to promote friendly interchange: massage chairs, video games, exercise equipment, meeting rooms, and coffee rooms, all of which colleagues welcome as places to relax.

3. Cash benefits

Gift vouchers were provided for the three major Chinese festivals, and scholarships were provided along with cash gifts for weddings, funerals, and other celebrations.

Retirement

Acer’s pension policies for every one of its global operations are instituted and enforced in accordance with the area’s regulations.

Take Acer Taiwan for instance: in addition to pensions earmarked that are due to our employees in accordance with both the Labor

Standards Act and the Labor Pensions Act, Acer Taiwan also introduced an “Early Retirement Package.” Employees who have

Thai Flood Relief

Acer Thailand provided relief in three stages to help employees during the flooding that devastated Thailand from

September through December 2011:

1. Employees who needed to move house because of flooding were given three days of leave.

2. Necessary assistance was provided to employees.

3. Reconstruction assistance was provided.

A total of 214 employees received government subsidies

(amounting to about 1.6 million Thai baht or US$53,333), and the company also negotiated with hotels for temporary employee accommodation. reached the age of 50 can apply for retirement to plan for their pensioned future as long as they have been with Acer for 15 full years.

A cocktail party celebrates the opening of staff leisure space.

Staff travel

Acer Family Day

Employee Relations

Communication with Employees

Acer respects the opinions of its employees and provides open internal channels of communication including support service hotlines, cross-rank communication with higher level managers, and a biennial global online employee opinion survey. In addition, an

Employee Representative Meeting is held each quarter, hosted by the chairman and CEO, during which elected representatives have face-to-face communication on the making and implementation of resolutions about company operations, the working environment, and employee interests. Important decisions made during the

Employee Representative Meeting in 2011, for all of which we have formulated and are carrying out plans for improvement, are given below.

Major Resolutions Made During Taiwan-area

Employee Representative Meetings in 2011

• Institute a feedback channel for staff opinions about products.

• Provide a channel for employees to purchase gift vouchers.

• Increase the frequency of health examinations.

• Increase welfare for section-level managers.

• Provide mobile phones to sales personnel.

• Revise regulations for flight cabin class for business travel.

• Improve the office environment.

No. of Employees Taking Unpaid Parental Leave in 2011

No. Applying for

Unpaid Parental

Leave

36 103

139

No. Returning to

Work After Leave

34 65

99

03

Males

Females

06 09 0 120 150

Human Rights and Freedom of

Association

Acer believes that each employee deserves equal treatment and respect. In addition to striving for and respecting internationally recognized human rights (such as those embodied in the UN’s

“Universal Declaration of Human Rights” and the basic conventions of the International Labor Organization), we have formulated a

Employee Relations

42

2011 Acer Corporate Responsibility Report

Employee Welfare and Advancement

human rights policy for communication to suppliers, customers, investors, employees, and the community as part of our business ethics; further, we have never checked or obstructed our employees’ freedom of association.

To protect human dignity and gender equality in employment and provide a working environment where employees are free of sexual harassment and gender bias, we have laid out our “Measures for the Prevention of Sexual Harassment, and Disciplinary Methods,” clearly stipulating complaint channels, operating procedures, and disciplinary rules, and have organized sexual harassment prevention training classes to help employees recognize and prevent sexual harassment. The Company received two sexual harassment complaints in 2011, and they were investigated immediately and disciplinary action taken. No cases of racial discrimination have been reported.

Time to Value Values

To recognize outstanding employees performance, strengthen morale, so that staff members will identify more closely with the company’s core values, in 2011 Acer Middle

East screened outstanding employees for recognition based on innovative, fast, effective, value creating, customer-centric, caring, and ethical qualities. The awards ceremony was held in the Dubai office in August, with 40 employees receiving 45 awards. Later on, the stories of their achievements were e-mailed to other employees for inspiration.

Continuous Learning and Growth

Personnel Training and Career

Development

The focus of our training was adjusted in line with Acer’s strategic repositioning in 2011 to give added emphasis to employee growth and strengthen core competence, thereby assuring the effective implementation of the Company’s strategies. Our training priorities in 2011 included the creation of value for customers through innovation, boosting of the efficiency of implementation by reinforcing process management, strengthening brand image by enhancing product quality, and moving from “push” to “pull” in marketing.

The focal points of training are passed on through new-hire training, general training, professional training, managerial competence training, and online learning. To assure quality, all training is carried out in accordance with the “Management Procedures for Internal and External Training.” Training in the Taiwan area in 2011 included the offering of 186 training courses which attracted 4,865 personnel for a total of 19,574 person-hours of training. Outside of Taiwan,

3,056 personnel undertook a total of 42,940 person-hours of training.

Male

4,807

Female

3,114

Total

7,921 No. of Trainees

Total Person-

Hours of

Training

Average Hours of Training per

Trainee

39,941

8.31

22,573

7.25

62,514

7.89

Diversified Learning and Development

Each employee can upgrade his or her professional competence through a diverse range of development paths. Internally, these paths include on-the-job training, job coaching, job transfers, lectures, online learning, and study groups. Externally, employees can participate in professional seminars as well as short-term training at prominent universities and training institutions. We have also formulated “Incentives for Professional Certification

” to encourage employees to upgrade their skills and achieve professional certification by providing incentives and subsidies to cover the cost of professional certification.

Australian Learning and Development

Program

Acer Australia recognizes that employees are key contributors to the achievement of business targets, and strongly supports the continuous development of employees. The company’s internal Acer Management

Academy offers the following courses:

• Basic course: Basic Leadership Skills

Seven modules: Leading meetings, problem solving, effective delegation, disciplinary procedures, leading change, time management, and effective hiring.

• Advanced course:

Seven modules: Supervising outstanding performance, consultative management, team building, effective business communication, decision making, finance, and establishment of strategic relationships.

Courses

Offered in 2011

Basic

Advanced

No. of

Persons

Completing

11

11

No. of

Continuing to

Participate in

2012

6

25

Total

Participants in 2011

17

36

43 Continuous Learning and Growth

2011 Acer Corporate Responsibility Report

Employee Welfare and Advancement

Training Framework and Results

General Training Courses

The general training courses were mapped out primarily in accordance with the 2011 key training plans, with classic courses such as quality function deployment (QFD) practice, using systematic innovation tools to enhance performance—use of Triz and InnoWorkBench software, project risk management and response planning, and marketing from the customer’s standpoint. A total of 2,906 employees participated.

2

1

4

3

Managerial Skills

In line with Acer’s business development, the focus of managerial training is on the strengthening of ability to lead change, boosting team morale, and building effective hiring and retention skills. Typical training courses include leading change at the senior management level; coaching and communication; building high-performance teams at the intermediate management level; and enhancing fundamental management competence at the supervisor level.

Professional Training

The various departments are provided with the professional skills and training they need, and professional speeches are arranged to help employees understand the trends in product development; the topics include, for example, emerging Android devices and service market opportunities, the development of applications for tablet devices, opportunities presented by the development of the cloud computing industry, and trends in touch-screen technology.

New-hire Training

New employees receive orientation training during their first day on the job to give them an understanding of basic operating procedures. Within their first month on the job, they are provided with new employee training to help them understand the company’s systems, rules, core values, behavioral standards, and corporate culture with the aim of melding them fully into the Acer team. In the Taiwan area, 469 new employees were trained in 2011.

New employees in the Personal Computer Global Operations (PCGO) center are given dedicated PCGO training in three stages--basic core training, specialized function training, and manager-led coaching—to help them blend into the organization quickly and perform well.

Asplex Employee Training

To help employees hone their leadership skills and become potential successors in the future, in 2011 Acer Asplex chose one weekend each month for group study and learning by selected employees (including newly appointed managers).

Asplex also held one-day courses each to introduce financial status and new customs clearance procedures, enhancing knowledge and understanding of finance status and business conditions.

Performance Management and

Development

Acer’s performance management and development system was designed to improve the overall performance effectiveness on a personal, departmental, and organizational level. The committee is responsible for evaluating the performance of operations managers and determining their compensation, assessing the performance of operating teams, assessing staff compensation, and formulating bonus distribution policies. The committee reviews and ratifies items on the agenda annually, and schedules provisional meetings as necessary. In 2011, 100% of Acer Taiwan's employees underwent performance review.

Provision of a Safe and Healthy

Working Environment

General Safety and Health Training

Acer held a “General Safety and Health Training” program in 2011 in order to boost awareness of workplace safety and health and comply with the Council of Labor Affairs’ “Rules for Labor Safety and Health Training and Education” and the standards of OHSAS

18001.

Provision of a Safe and Healthy Working Environment

44

Employee Welfare and Advancement

The training helped employees understand Acer’s labor safety and health policy, as well as other items requiring attention, including employer responsibilities and employee obligations in respect to labor safety and health (the legal aspect); frequent office accidents, types of accidents, and preventive methods (environmental aspect); company rules regarding safety and health, and items needing employee cooperation (safety aspect); and the health promotion program (care aspect).

The training placed emphasis on case studies using incidents that occurred in the company to give the trainees a feeling of intimacy with the cases. Topics included the prevention of traffic accidents on the way home from work, laboratory hazards, computer operating hazards, risks in climbing and descending stairs, appliance safety, safe use of appliances (microwave ovens, refrigerators), office hygiene, overseas trips, travel health, diseases, and prevention.

The training was held in eight sessions with a total of 1,105 Acer

Taiwan employees participating.

Acer Sports Teams

Health Exams, Education, and Promotion

Acer Taiwan cooperates with medical institutions in giving health exams to its entire staff every two years. When an exam shows an employee to have a major anomaly, follow-up is carried out with the help of a medical institution. Acer Taiwan held a series of physical and mental health lectures, which over 2,000 people attended, and has set up in-house leisure areas, basketball courts, table tennis, basketball machines, video games, massage chairs, and other facilities to help relieve stress. “Acer Massage Stations” that were introduced in 2008 bring in blind masseurs and masseuses to serve employees; to date, more than 6,880 employees have taken advantage of this service.

To enrich the leisure life of our employees, Acer Taiwan encourages them to organize groups of various kinds; in addition, “Acer Sports

Teams” are established to encourage employees to participate in sports competitions such as the Taipei Marathon and 100k Bicycling

Tour. A total of 1,475 employees participated in these activities in

2011.

45

Standards of Business Conduct

Standards of Business Conduct

In addition to observing the laws and regulations of different countries around the world, Acer requests all staff members adhere to the principle of integrity. To that end, in 2009 we established

Standards of Business Conduct (SBC), with provisions including observance of the principles of fair competition, no acceptance of improper gifts or entertainments, opposition to corruption, and no discrimination or harassment. Any violation of these standards will be punished in accordance with the severity of the case, and severe cases will be dealt with by disciplinary action or dismissal.

These are the rules of conduct for all Acer employees engaging in business activities. When a new employee enters the company, he or she is given training and education in observing the rules, and observance is included in performance assessment in order to assure good behavior.

2011 Acer Corporate Responsibility Report

Singapore Health Program

Acer Singapore introduced a series of employee health programs in 2011, including a “Know Your Health Facts

Quiz” that was held prior to the Lunar New Year to boost awareness of healthy living. Chinese medicine health lectures were held during lunchtimes to provide an understanding of how to promote health with Chinese medicine. In addition, blind masseurs and masseuses from the Singapore Association of the Visually

Handicapped (SAVH) were brought in to provide roving massage services in the company; a SAVH fund-raising activity was held at the same time, with the company matching donations by employees. Acer Singapore also provided free basic health exams in the office, with about

1/3 of all employees participating.

Free employee health exams

CSR and SBC Training in Vietnam

Acer Vietnam provided one to two hours of CSR and

SBC training for all employees in 2011; participants were tested after the class, with a score of 28/30 required for passage. Ninety percent of all employees have received this training so far, and all new recruits will be required to undergo the training.

Customer Service

Acer’s success depends on the trust that customers place in us. Ever since its inception, Acer has given its highest priority to quality in all aspects of its operations; from product design to manufacturing to after-sales service, all of our operations conform to the demands of domestic and international regulations concerning consumer safety and performance. We at Acer firmly believe that our “quality in everything we do” approach has helped us gain considerable competitive edge in the market; more importantly, to satisfy our customers we work proactively to understand their needs and constantly introduce products that are better and easier to use. Our aim is to provide customer services which meet or exceed the expectations of our customers and create greater value for them.

Provider of Acer

E-Academy, which has over

8,000

users amongst staff and partners.

2011 Acer Corporate Responsibility Report

46

2011 Acer Corporate Responsibility Report

Customer Service

Acer Group Service Model

The Acer Group Service Model is unique in today’s IT industry. In addition to operating service centers around the world, the Acer

Group also partners with Authorized Service Providers (ASPs) wherever required. The four key attributes of this model are:

• Hybrid model - Own facilities and operations complemented by a network of partners

• Self-owned IT system: ‘One Company, One System’ - Allows seamless real-time links among all service entities

• Spare parts logistics – Central and local inventory managed by one single system

• Multiple brands – Meets the brand requirements (Acer, Packard

Bell, Gateway, eMachines, and Founder) of specific customers across the globe

Besides the unique service model, our inherent strengths lie in providing quality repair services that:

• Are technically sound and fully satisfy customer’s needs;

• Meet the applicable regulatory requirements;

• Are delivered on time at agreed costs;

• Represent value for money.

To better serve our clients from around the world, we have designed a variety of customer-oriented service platforms based on the different natures of various customer groups and marketing channels. We have also set up multiple contact channels to facilitate communication, so as to offer our customers worldwide a more convenient and comprehensive service network.

Our customer types include consumer product users, small and medium enterprises, large enterprises, educational institutions, and government. Our service channels for end users include Webbased Customer Self Service (email and chat), Contact Centers and Technical Support, Depots/Repair Centers, ASPs, Third Party

Maintenance Partners (TPM), and International Traveler Warranty

(ITW) Repair Centers. For corporate customers we offer on-site and online technical support.

Our state-of-the-art Contact Centers satisfy the needs of customers all over the world, supporting them with their queries, by telephone or e-mail, on product issues, usage, and technical clarification.

Our Global Download facility allows customers to download driver programs and user manuals for all Acer brands from the Internet.

Customers can also get answers to questions about products via email, live chat, robust FAQs, smart assistance for emails, and online customer and partner repair case creation. They can also use text messaging, the web, or email to find out about the status of repairs.

The Acer Service Network

The Acer Service Network is made up of repair centers managed directly by Acer, together with authorized service providers. When a customer’s product requires repair, whether it is in Milan; Kuala

Lumpur; Temple, TX; or the location of any other Acer Repair

Center, it will be subjected to the same repair process, under the same rigid quality standards. Almost 60% of our global repair volume is handled directly by Acer, giving us total control over the operations and assuring the highest standard of repair quality.

To achieve the highest quality of diagnostics and repair, we have implemented Service Quality Assurance and Diagnostics (SQUAD) along with PC Doctor Inc., a world leader in Computer Diagnostics, as Acer’s customized quality framework.

Acer’s Customer Service System

(CSS)

A good system is the backbone of customer service activity. To further enhance the quality of customer service, we have developed the Customer Service System (CSS) as a home-grown suite of programs that provides one unified system for management of repair centers, ASPs, third-party maintenance partners (TPMs), contact centers, parts planning and warehouse management. It also manages various other web-based customer interactions.

Customers

Suppliers &

Vendars

Acer Internal

RepairCenters

SparesHub

Customer

Complaints

Extended

Warranty

Innovative on Service

Escalation

System

Ser

Integrated

Warranty

System vice Reporting

DemandPlanningSystem

Repair Centers

Suppliers

APS’

Parts

Logistics

System

Customer Service

Systems

Division

International

Warranty

Backend

Information

Center/AFR

Carriers

Call Center/

System

Call

Centers

Customer

Service

Self

Care

Dealer

Support eb

Dealers

System

ASP

Repair

Centers

Authorized Service Provider

’s ers artn

D ea s, D ler istr

Acer Internal

CSS Overview

47 Acer Group Service Model

Customer Service

The most unique and competitive aspect of CSS is its method of logistics operation, which uses the actual demand for parts by the different repair centers to optimize orders for parts warehouses in different areas. For example, if multiple countries order the same spare parts from a regional service operation center at the same time, the center will first ship parts for cases that have CSS system repair numbers. This reduces the time that customers have to wait for repairs.

CSS is already being used in Europe, the Middle East, Africa, and the Americas. The Asia-Pacific region is expected to have the system deployed by the end of 2012; the following year it will be expanded to China and Taiwan, bringing the finest of services to customers all over the world.

The customer satisfaction score for Acer

Europe, the Middle East, and Africa rose from 7.97 in 2010 to 8.26 in 2011. Acer

UAE also won a Superbrands award in

2011.

In China the survey focused on service centers for end consumers and used brand differentiation. Customer satisfaction reached 94.0 for the Acer brand, 93.8 for the Gateway brand, and 98.48% for the Founder brand. Acer has won recognition and approval from consumers and the media in China, and the Acer brand has won the Best Service Brand award from Popular Computer Week for six consecutive years beginning in 2006.

Web-based training for employees and partners

Acer has introduced the Acer E-Academy in all regions around the world to meet the learning needs of Acer employees and partners, and over 8,000 users have benefited from the system. In 2011 we offered over 100 courses in multiple languages, helping employees and partners to acquire the latest product and process know-how.

Customer Satisfaction Survey

Customers are the reason for our existence. Acer designs and conducts regular customer satisfaction surveys tailored to each region to get customer feedback and work on areas that need improvement.

Acer Taiwan has improved its corporate customer satisfaction score from 90 points in 2010 to 92 points in 2011, and its consumer customer satisfaction score from 86.8 points in 2010 to 88.1 points in 2011.

2011 Acer Corporate Responsibility Report

U.S. Customer Service Week

Customer Service Week was held at the Acer Service

Corporation in Temple on Oct. 3-7 to help our customer service personnel reacquire their energy and ardor for customer service, with all Acer personnel participating.

Customer Service Week 2011 concentrated on the theme

“Refresh, Recharge, Reconnect,” and a series of activities was held to achieve the following:

• Boost morale, motivation, and teamwork

• Recognize frontline agents

• Raise company-wide awareness of the importance of customer service

• Thank other departments for their support

Through this annual international activity we hope to emphasize the importance of customer service and award our outstanding and professional customer service personnel while stimulating them to continue serving our customers with enthusiasm and professionalism.

customer service week 2011

REFRESH • RECHARGE • RECONNECT

Customer Satisfaction Survey

48

Customer Service

Product Alerts and Recalls

In the event of a product alert or recall, Acer publishes the details needed by customers on the “Alerts & Recalls” section of its various national websites so that customers can find out whether their products are affected and, if so, what action to take. In addition, our Contact Centers proactively reach out to affected customers and help them resolve their problems.In 2011, nothing related to consumer health and safety concern occurred.

Customer Privacy

We do everything we can to protect our customers’ confidential information. We strictly observe Acer’s privacy policy , demand that all Acer employees strictly protect the confidential and proprietary information of our customers, and incorporate data security technology in our products to protect the personal information of consumers. We have adopted separate measures on the following three levels:

2011 Acer Corporate Responsibility Report

All the personal information provided by clients for logging into Acer’s website and making purchases is rigorously controlled and protected. A designated email address ( privacy_ [email protected]

) has been set up to handle complaints worldwide related to privacy issues.

Cl at

D a

Pr iva cy

Pr ote ctio n

Prote ction of Confident

iali ty

Tech nolo ora

gy i tion n A r P ce

of

Da ta S ec

We at Acer constantly update data security technology and help our clients control their data via both hardware and software installations.

Hacking Incident

In June, 2001, a security breach resulted in the release of customers’ information from Packard Bell server unit in Acer Europe. Customers’ names, addresses, phone numbers, email addresses and product serial numbers were accessed by a hacker group called the Pakistan

Cyber Army (PCA). After internal investigation, we have concluded that other personal and credit card information remains secure.

We comply with personal information protection laws such as the European Data

Protection Directive. Engineers at all of our service stations sign confidentiality agreements and may not copy, share, or distribute data on customers’ hard disks; before undertaking repairs, they present a list of service items to for customers to verify so as to assure their privacy rights. Authorized Service Providers must also sign similar agreements.

49 Product Alerts and Recalls

Community

Outreach

As a global brand, Acer has held constantly to the principle of “technology in our hearts, our eyes on the world.” We hope to make positive changes in the communities where we operate, not only in terms of economic development but also in social inclusion. Ever since their establishment, therefore, Acer and the Acer Foundation have used their technology and their products, the abilities of their staff, and their donations to give back to society. The total value of Acer’s global community participation in 2011 was approximately NT$220.85 million and was focused primarily on education,

Acer volunteer work, disaster relief, and environmental conservation, with special attention in education work given to enhancing digital opportunities for disadvantaged groups.

Products

75%

Cash

25%

Commercial Initiative in the Community

33%

Community

Investment

13%

Charitable

Donations

54%

• Community Donation • Donation Type

Community involvement worth approx. NT$

Provided access to

220,850,000

8,374

people through Acer's Mobile

Digital Classroom.

Provided access to Participated in

European "Schoolnet Educational

Netbook Pilot Project," serving over

7,000

students.

2011 Acer Corporate Responsibility Report

50

2011 Acer Corporate Responsibility Report

Community Outreach

Education

The encouragement of communities to use information and communications technology (ICT) to create digital opportunities has always been one of the main focuses of Acer’s community participation, so we cooperate with non-profit organizations that are deeply rooted in local communities all over the world in constantly promoting and exploring the creation of value by combining technology with education. We serve students, teachers, women, and other disadvantaged groups in remote areas through the development of computer-assisted instruction, increasing their opportunities to come in contact with computers and study them; and encouraging them, in this way, to use e-learning to boost their digital competitiveness and further helping them prepare to compete in the information economy.

Using Technology to Stimulate

Educational Innovation

As a world-leading computer manufacturer, Acer provides educational communities throughout the world with innovative and affordable technologies, making technology products into our learning tools—tools that no longer need to be studied.

We understand that technology can stimulate educational innovation; and to further promote new models of teacher-student interaction that can be developed through the introduction and use of technology, we have programs to encourage instructors to use technology products in education in both Europe and Indonesia.

European Educational Netbook Project

Acer cooperated with the European Schoolnet in the Acer-European

Schoolnet Educational Netbook Pilot Project (Netbook Project), and from January to June 2010 we carried out a Pre-pilot Project involving 59 schools in six countries. The Netbook Project ran from

September 2010 to June 2011; with the exception of three British schools, all of the classes that joined in the Pre-pilot Project went on to participate in the Pilot Project.

Building on the experience gained from the Netbook Project, Acer and European Schoolnet will follow up on their cooperation with a new tablet computer education innovation project, taking advantage of the tablet’s ease of use to continue probing the feasibility of applying new technology in schools. These projects are triggering changes in learning visions and strategies in the participating countries and schools, and clarifying directions for the development of e-learning in the future.

In order to better understand how students and teachers make use of netbooks in different educational situations, we conduct performance evaluations of teachers, students, and parents participating in this project. Through this, we ourselves can better understand the trends and realities of applying technology to education, and share this experience with teachers and school management.

For more information, please visit the Acer for Education and 1:1

Pedagogy for Schools websites.

Participants in the Netbook Project:

6

Countries (Italy, France, Spain, the UK, Germany, Turkey)

124

Schools

245

Classes

1000

Teachers More than

7000

Students

Provisions for each class participant:

• Acer netbook for learners

• Acer notebook for teachers

• An Acer desktop that can function as a mini server

• Access to a multilingual resources portal

• An online teachers’ community to develop and share ideas

Using affordable technology such as netbooks stimulates educational innovation.

51 Education

Community Outreach

2011 Acer Corporate Responsibility Report

Upgrading the Information Ability of Indonesian

Teachers

We have realized that to upgrade the information ability of society, it is necessary to start with teachers; and so, beginning in 2010,

Acer Indonesia has implemented the Acer Guru Era Baru Project for upgrading teacher competence, utilizing such methods as seminars, workshops, sponsorship, and the provision of product discounts. In

2010 and 2011 we held eight Guraru Roadshows, in which 5,000 teachers participated, and set up a Guraru website to encourage teachers to share and discuss their experiences with others. In 2011 we also provided sponsorship for the Teaching Indonesia Project of the Indonesia Mengajar Foundation, which recruited, trained, and dispatched 250 outstanding Indonesian university graduates to teach in isolated areas for one year. Acer provided each of the teachers with an AS4830TG notebook computer, at a total cost of

US$174,750, to encourage them to transfer their information ability to remote areas.

Upgrading Digital Opportunity in Remote

Areas

Geographic factors have long made it impossible for children in remote areas to enjoy educ ational resources like those in urban areas, and this has affected their pursuit of further education. For this reason Acer has always focused its community participation on upgrading digital opportunities in remote areas and using technology to help children narrow the education gap and achieve digital inclusion. In 2011, Acer’s global remote-area digital opportunity upgrading project encompassed Cambodia, China, the

Philippines, and Taiwan.

Digital Opportunities for Remote Schools in China

In China we provided sponsorship to the Rural Education Action

Project (REAP), organized by Stanford University and the Chinese

Academy of Sciences, by providing 200 computers to rural schools in Qinghai with the hope to help students and policymakers to develop effective policies and appropriate programs to improve the existing rural education system. We also cooperated with the Ying

Kuang Educational Foundation in donating, through the Beijing

Youth Development Foundation, 533 computers and 19 projectors to 16 Ying Kuang Hope Schools in Inner Mongolia and Yunnan.

University students receiving Acer grants guided students in using and maintaining the computers.

Computers donated by Acer light the lamp of digital hope for rural schools.

Philippine Digital Opportunity Centers

In the Philippines, Acer donated to the establishment of three digital opportunity centers in remote areas. These have become community digital opportunity centers, providing community Internet café, printing, and computer learning services:

• Sierra Madre Foothill Digital

Opportunity Center in Bulacan:

Cooperated with the Green

Earth Heritage Foundation in donating nine computers.

• Bohol Digital Opportunity

Center: Cooperated with the

Village Online Education

Project (VOEP) in donating 20 desktop computers.

• Pangasinan Digital Opportunity

Center: Cooperated with VOEP in donating 10 computers.

A Digital Opportunity Center in the Philippines.

Acer sponsored instructors teaching in 14 remote Indonesian areas.

REAP Project donation ceremony.

The Rural Education Action Project (REAP) is a foundationtype organization established by Chinese and American academics to work for study and development of rural education in China.

Education

52

Community Outreach

Acer Digital Vans

In Taiwan, after being inaugurated in Hualien in June 2010, two

Acer Digital Vans, each equipped with 21 notebook computers, one projector, and wireless Internet access along with instructors and assistant teachers, traveled to pre-appointed community groups in different localities to teach, receiving a hugely enthusiastic response from the public. By the end of 2011 the vans had made 529 trips and served more than 50 local non-profit organizations, attracting

8,374 participants to their classes. A number of organizations offered classes through long-term cooperation with the Digital Vans, and the Van teams assisted students in obtaining TQC professional computer certification. In the future, the Action Vans will further assist in industrial development in local Hualien areas through e-learning, and two more Digital Vans are to be inaugurated in Yilan in 2012.

Senior citizens attending an Acer Digital Action Van class.

2011 Acer Corporate Responsibility Report

Women’s Information Ability Enhancement Project

Acer has a long-term concern for the information ability of women in Italy, and in 2011 continued cooperating with Microsoft in the [email protected] project, with the scope of the project being expanded; 95 computers and four projectors were provided to help institute a series of computer classes, including web search, e-mail, and word processing software. A series of corporate computer application classes has also been set up for female office workers so as to enhance the digital information ability of women in life and at work.

For more information, please visit the [email protected] and

[email protected] websites.

London 2012 Chairman's Club Legacy

Project

Acer has been a Worldwide TOP Partner of the International

Olympic Committee since Jan. 1, 2009. The Chairman’s Club is a network of senior executives from the sponsors of the

London 2012 Olympic and Paralympic Games. Its overall aim is to utilise the combined weight of the business skills and acumen of the members to enhance the success of London

2012 and its legacy, helping to promote the positive impact of the Games in the UK through a programme of developing qualified ‘Mentors’ developed by the Chartered Management

Institute (CMI). We participated in the Mentoring Programme for British schools that was developed by the Chairman’s

Club; in 2010 and 2011 six Acer personnel first completed the

Young students welcome the Acer Digital Action Van.

Certified Mentoring Training Programme developed by the CMI, and then mentored students (aged 14 to 21) and peer mentor Head

Teachers and Deputy Head Teachers at nominated schools and colleges in the UK for a period of six months.

Also in Great Britain, Acer Olympic Games Team worked with the UK National Apprenticeship Service (NAS) in offering eight

British university students an opportunity to intern with the Acer

Olympic Team and, upon completion, earn their National Vocational

Qualification. Through the exchange of corporate experience, this project stimulated the potential of schools and young students for the development of managerial and leadership talent in the schools and finally for the training, within Acer Olympic Games Team, of a group of confident and certified mentors who would become leaders in strengthening our values and principles.

53 Education

Italian women learn how to use computers.

Acer Olympic Games Team proudly presents our Student Interns and

Apprentices assigned to the London 2012 Olympic Project.

Left to Right: Anthony Schafer, Aziz Moten, Chris (AUK HR), Apoorva

Mohan, Ryan Blackman, Hamza Patel, Tejbir Bhatia, George Stewart,

Daljeet Singh.

2011 Acer Corporate Responsibility Report

Community Outreach

Acer Volunteers

In addition to our donation of funds and core technologies, volunteer services also play an important role in our community participation.

All Acer Taiwan employees get two days of paid volunteer leave per year, allowing them to join the charity groups and community activities that they support, helping with the community’s social and environmental needs. Volunteer service also allows our employees to gain new experiences and ways of thinking, as well as the abilities they need to face the challenges posed by work and their customers.

Acer Taiwan’s volunteer team holds regular internal employee donation activities every year, as well as blood donation and LOHAS environmental protection activities at Acer’s headquarters in Xizhi during Earth Months each year. In their community involvement,

Acer volunteers organize all kinds of community service activities every year, and Acer employees are encouraged to use their volunteer leave to participate. In 2011 these activities comprised two major categories, environmental protection and care for disadvantaged groups, with a total of 115 employees participating.

Our regional offices also organized their own volunteer activities in

2011. For instance, Acer Thailand invited its employees to record audio books for the blind, and within five months 17 books were produced and donated to foundations for the blind. The CSR Club organized by the employees of Acer India continued to carry out energy conservation, carbon reduction and community service activities. When natural disasters happened, Acer employees in different places immediately joined local volunteer efforts to help the disaster areas weather their difficulties.

Environmental Conservation

1. Participation in environmental work by joining in the weeding of paddies in the Guandu Nature Park.

2. Trails were improved and ditches cleaned up at the Mt.

Basian Nature Center.

3. Participation in the “One Tree For Everyone” tree-planting activity.

Acer volunteers left Taiwan for the first time in 2011, taking stationery materials donated by colleagues to two villages in

Cambodia along with a dental care group that provided five days of charity dental care to students and villagers.

The tablet-computer cartoons and games that Acer volunteers took to Cambodia alleviated the children’s fear of dentists, and the young patients learned basic dental hygiene through the volunteers’ lively illustrations and teaching. The Acer volunteers also gained a lot, learning the joy of helping others.

Concern for disadvantaged groups

1. Guidance and companionship for disadvantaged students in Xizhi.

2. Delivering meals to old folks living alone on the night before Lunar New Year’s Eve.

3. Volunteers serve with a dental care team in Cambodia.

Total Donations from Employees in 2011

NT$

6,075,000

Amount of Employees' Donations

Time of Donation

First-half 2010

Second-half 2010

First-half 2011

Mar. 11,2011

Earthquake in Japan

Amount (NTD)

$1,952,000

$1,950,000

$2,282,000

$3,793,000

Thanks to donations by its employees, Acer has become one of the Blood Center’s topfive donor groups.

2500

2000

2,314

1,915

1,611

1500

1,072

1000

527

500

2007 2008 2009 2000 2011

Bags (250cc) Donated

Acer Volunteers

54

Community Outreach

Disaster Relief

Major disasters can affect all of society and even the whole country.

When such disasters occur, as members of their communities,

Acer and Acer volunteers cooperate with local humanitarian relief organizations in contributing needed resources and manpower to support community reconstruction. In 2011 our global disaster relief activities provided help following the Japanese tsunami, Thai flooding, American flooding, and Philippine typhoons.

Flooding in the United States

Acer Gateway cooperated with local relief organizations to prevent the Missouri River from overflowing, and offered

Gateway’s offices and parking lots as relief activity sites for the storing of sandbags, relief equipment, and belongings of residents. Acer Gateway volunteers also contributed more than 500 hours of work to help with community evacuation and the placement of sandbags.

The Japan Earthquake and Tsunami

Acer Japan donated US$1 million to the Japanese Red

Cross as well as 180 computers to the disaster area; in addition, 15 volunteers traveled to the disaster area to set up computers and networks, and Acer Taiwan employees donated NT$3,793,000.

Futaba-machi residents used Acer computers to communicate with the outside world.

Flooding in Thailand

Acer Thailand raised 82,482 baht (US$2,658) to donate to the Chaipattana Foundation (Thai Royal Foundation), and

20 volunteers participated in Bangkok University’s disaster relief efforts by packing relief foods.

Acer volunteers helped set up computers and networks.

Acer Taiwan volunteers serve as workers for an evening fundraising party for the Japanese earthquake.

Acer Thailand volunteers made food packages for disaster relief.

Philippine Typhoons

Acer Philippines and Acer Middle East both donated cash and Acer Middle East volunteers prepared 250 food packages that were donated, through the Philippine Red

Cross, to help disaster victims get through the Christmas and New Year holidays.

Acer Gateway offered its North Sioux City offices and parking lots for use by relief organizations.

Disaster Relief

Acer Thailand donated funds raised at a movie charity auction.

Acer Middle East volunteers pack relief food for Philippine typhoon victims.

Community Outreach

2011 Acer Corporate Responsibility Report

Environmental Conservation

We promote environmental conservation concepts through our volunteer activities. The Acer Taiwan volunteer team, for example, organizes environmental conservation activities; Acer Singapore participates in Earth Hour; Acer India holds an Environment Week; and in Japan we provide a temperature-sensitive calendar (

See page 32 ). We also work with non-profit organizations to strengthen

environmental awareness among the public and Acer employees by holding environmental activities.

understand the impact of climate change on the Mekong Delta,

Acer Vietnam sponsored a Green Business Forum organized by the World Wide Fund for Nature and other organizations for the purpose of sharing experiences in climate change and discussing action measures designed to reduce the environmental impact of production and other corporate activities.

Greenhouse Seedling Cultivation Project in the Philippines

In the Philippines we worked with the Green Earth Heritage

Foundation to build an “Acer Bamboo Greenhouse” at the Sierra

Madre foothills in Bulacan to cultivate tree seedlings. With the advantage of bamboo’s flexibility and ability to withstand bad weather, we estimate that 10,000 seedlings can be cultivated in this greenhouse for planting in the countryside. The greenhouse will also be used by the community and by Acer employees as a place for environmental education.

Environmental Education Activities in

Vietnam

In Vietnam we held “15 Green Days with Acer” on Aug. 12-27, inviting communities and customers to organize teams and join in environmentally friendly activity competitions. A total of 113 teams participated. We also cooperated with provincial People’s

Committees in a 42-day PC4Life – Trans-Vietnam Green Journey through 16 provinces, promoting remote-area education and environmental conservation concepts along the way. This activity attracted about 1,500 participants. To help companies better

Awards were presented to outstanding “15 Green Days with Acer” participants.

Acer employees participated in a “Green Walk.”

Communities, customers, and Acer engaged together in environmental action.

Tree seedlings grow in the Acer Bamboo Greenhouse in the Philippines.

For information on more Acer community activities, please visit the

Sustainable Acer and Acer Foundation .

Environmental Conservation

56

57

GRI Content Index

About This Report

3.1, 3.2, 3.3, 3.4, 3.6,

3.7, 3.8, 3.13

High Level Statement

Message from the Chairman &

CEO

2011 Acer Numbers at a

Glance

1.1, 4.2

Message from the Corporate

President

Report Summary

1.1, 1.2, EC MA, EC2

2011 Goals and Achievements

4.12 ,4.16, EN18,

EN26, LA8, LA10,

SO5

2012 Goals and Commitments EN 26

2.8, 3.9, 4.3, 4.14,

EC4, EN3, EN4, EN5,

EN8, EN16, EN17,

EN22, HR2, LA1, LA2,

LA7, LA10, LA11,

LA15, PR2, PR4,

PR5, PR7, PR8, PR9,

SO6, SO8, EC8

Corporate Governance

History and Development

Market Recognition

Marketing Communication

Corporate Governance

Corporate Responsibility

Policy and Strategy

Corporate Responsibility

Governance

1.2, 2.1, 2.2, 2.3, 2.4,

2.5, 2.6, 2.7, 2.8, 2.9,

EC MA, EC1

2.10

PR6

4.1, 4.5, 4.6, 4.7

3.5

2.3, 4.8, 4.9, 4.10

Stakeholder

Engagement

Public Policy Participation

Support for New Issues

Other Initiatives and

Participation

Environmental and

Energy Management

Comprehensive Environment,

Health, and Safety

Management

Our Operations and the

Environment

Product Design that

Incorporates Environmental

Considerations

Energy and Climate Change

Response

1.2, 4.11, 4.12, 4.13,

4.14, 4.15, 4.16, 4.17,

SO MA, SO5

EN MA, 4.12

EN5, EN8, EN21,

EN22, EN23, EN28

3.9, 4.11, EN18,

EN26, EN27, PR MA,

PR1, PR3

3.9, 3.10, 3.11, EN3,

EN4, EN5, EN6, EN7,

EN16, EN17, EN18,

PR3

Responsible Supply

Chain

Supplier Social and

Environmental Management

On-site Audit

Follow-up and Response

Reponse to Conflict Minerals

California Transparency in

Supply Chains Act

Supplier Greenhouse Gas

Management

4.12, 4.13, HR MA

4.12, 4.13, HR MA

HR2, HR6, HR7

4.12, HR6、HR7

SO5, 4.12

HR MA, HR7

4.12, EN18

2011 Acer Corporate Responsibility Report

Employee Welfare and

Advancement

LA MA, HR MA

Staff Structure

Competitive Compensation

Employee Relations

Continuous Learning and

Growth

Safe and Healthy Working

Environment

Standards of Business

Conduct

EC7, LA1, LA2, LA13,

HR6

EC3, LA3

4.4, HR4, HR5

LA10, LA11, LA12

LA8, LA15

4.8, SO MA

Customer Service

Acer Group Service Model

PR MA

Acer’s Customer Service

System (CSS)

LA11

Customer Satisfaction Survey PR5

Product Alerts and Recalls PR2

Customer Privacy PR8

Community Outreach

EC8, SO MA, SO1

Education EC9

Acer Volunteers

Disaster Relief

Environmental Conservation

GRI Content Index

EC9

3.12

58

2011 Acer Corporate Responsibility Report

ASSURANCE STATEMENT

SGS TAIWAN’S REPORT ON SUSTAINABILITY ACTIVITIES IN

ACER INCORPORATED’S CORPORATE RESPONSIBILITY REPORT OF 2011

NATURE AND SCOPE OF THE ASSURANCE/VERIFICATION

SGS Taiwan was commissioned by Acer Incorporated (hereinafter referred to as ACER) to conduct an independent assurance of the Corporate Responsibility Report of 2011. The scope of the assurance, based on the SGS Sustainability Report Assurance methodology, included the text, and data in accompanying tables, contained in ACER’s all group subsidiaries of this report.

The information in the ACER’s Corporate Responsibility Report of 2011 and its presentation are the responsibility of the superintendents, CSR committee and the management of ACER. SGS Taiwan has not been involved in the preparation of any of the material included in the ACER’s Corporate Responsibility Report of 2011.

Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of verification set out below with the intention to inform all ACER’s stakeholders.

The SGS Group has developed a set of protocols for the Assurance of Sustainability Reports based on current best practice guidance provided in the Global Reporting Initiative Sustainability Reporting Guidelines. These protocols follow differing options for Assurance depending the reporting history and capabilities of the Reporting

Organisation.

This report has been assured at moderate level of scrutiny using our protocols for:

 evaluation of content veracity; and

 evaluation of the report against the Global Reporting Initiative Sustainability Reporting Guidelines

(G3.1 2011).

The assurance comprised a combination of pre-assurance research, interviews with relevant employees at headquarter of ACER in Taiwan; documentation and record review and validation with external bodies and/or stakeholders where relevant.

Financial data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process.

STATEMENT OF INDEPENDENCE AND COMPETENCE

The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than

140 countries and providing services including management systems and service certification; quality, environmental, social and ethical auditing and training; environmental, social and sustainability report assurance.

SGS Taiwan affirms our independence from ACER, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders.

The assurance team was assembled based on their knowledge, experience and qualifications for this assignment, and comprised auditors registered with SA 8000, EICC, QMS, EMS, SMS, EnMS, GPMS, GHG

Verification Lead Auditors and experience on the SRA Assurance service provisions.

VERIFICATION/ ASSURANCE OPINION

On the basis of the methodology described and the verification work performed, we are satisfied that the

GP5008 Issue 4 DRAFT

2011 Acer Corporate Responsibility Report information and data contained within ACER’s Corporate Responsibility Report of 2011 verified is accurate, reliable and provides a fair and balanced representation of ACER sustainability activities in 01/01/2011 to

12/31/2011. Some statements and data within the scope were not assured due to lack of accessible records during the timescale allowed for assurance.

The assurance team is of the opinion that the report can be used by the Reporting Organisation’s Stakeholders.

We believe that the organisation has chosen an appropriate level of assurance for this stage in their reporting.

The report is the first to be assured by an independent assurance team and ACER has taken a bold step by offering the report to evaluation against Global Reporting Initiative’s G3.1 guidelines. This shows a deserved confidence in their reporting process.

In our opinion, the contents of the report meet the requirements of Global Reporting Initiative G3.1 Application

Level B

+

.

GLOBAL REPORTING INITIATIVE REPORTING GUIDELINES (G3.1 2011) CONCULSIONS, FINDINGS

AND RECOMMENDATIONS

Principles, Standard Disclosures and Indicators

The report, ACER’s Corporate Responsibility Report of 2011, is adequately in line with the Global Reporting

Initiative G3.1 application level B

+

. The principle of stakeholder inclusiveness and Balance may be further enhanced. It is recommended to have more direct involvement of different stakeholders during engagement to ensure better consistent result in future reporting. It is also recommended to formalize both process and criteria applied to assess materiality. Contents of disclosure on management approach may have long-term and/or intermediate goals for each aspect.

The d

isclosure of performance indicators by gender needs to be improved in next reporting. It is suggest using page number or web link to identify the location of the standard disclosures in the report.

Signed:

For and on behalf of SGS Taiwan

Dennis Yang, Chief Operating Officer

Taipei, Taiwan

10 January, 2013

WWW.SGS.COM

59

GP5008 Issue 4

www.acer-group.com

2011 Acer Corporate Responsibility Report

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