Case study: How Compal reduces the environmental impact of its products
As one of the world’s leading manufacturers of notebook PCs, smart devices, data centre equipment and LCD products, with factories in Taiwan, China, North and South America, Compal seeks to design its products in ways that minimise environmental pollution Tweet This!, preventing hazardous substances from being released into the environment.
This case study is based on the 2017 Corporate Social Responsibility Report by Compal published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Abstract
The rapid advancement of technology has shortened the life cycle of consumer electronics, making it increasingly important for electronics manufacturers to design and manufacture their products with a focus on waste reduction and the re-use of resources. In order to reduce the environmental impact of its products Compal took action to:
- make products easier to recycle and environmentally friendly
- optimise packaging
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With this case study you will see:
- Which are the most important impacts (material issues) Compal has identified;
- How Compal proceeded with stakeholder engagement, and
- What actions were taken by Compal to reduce the environmental impact of its products
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What are the material issues the company has identified?
In its 2017 Corporate Social Responsibility Report Compal identified a range of material issues, such as economic performance, market presence, labour-management relations, customer health and safety. Among these, reducing the environmental impact of its products stands out as a key material issue for Compal.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Compal engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Labour-management communication · Internal publications · Welfare Committee · Internet and employee comment box, sexual harassment complaint hotline, fraud or violation of ethical conduct report mailbox · Compal_CSR FB fan page push notification and opinions response · Education and training |
| Customers
| · Regular communication and discussion conference · Email discussion · Customer audits · Customers’ supplier conferences |
| Investors/ Shareholders | · Shareholders’ meeting · Shareholder hotline/mailbox · Investor seminar · Market Observation Post |
| Suppliers
| · Supplier conferences · Email discussion · Supplier online assessment and on-site audit · Supplier complaints mailbox · Internal supplier system |
| Government
| · Correspondence · Participation in Government Projects · Participation in regulatory seminars/conferences · Actual Visits |
| Non-profit Organisations | · Participation in charity events · On-site Visits · Telephone Contact |
| Media | · Press releases · Press conferences |
| Community | · Participation in community activities · Email Discussion · Telephone Discussion |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics, Compal engaged with its stakeholders through questionnaires, which were complemented by a new round of stakeholder surveys in 2018.
What actions were taken by Compal to reduce the environmental impact of its products?
In its 2017 Corporate Social Responsibility Report Compal reports that it took the following actions for reducing the environmental impact of its products:
- Making products easier to recycle and environmentally friendly
- When designing its products Compal uses, as much as possible, environmentally friendly materials, also introducing numerous design improvements to make products easier to recycle. The environmental, sustainable and renewable designs that Compal implements include the following:
- prohibiting or reducing the use of hazardous substances
- using only one type of plastic materials, where appropriate
- introducing renewable and bio-degradable plastics into electronic products
- using plastic materials compatible with surface treatment materials, so that products can be recycled and reused
- designing products in ways that make them easy to disassemble and recycle
- using modularised designs so that main parts can be replaced and upgraded, extending the product life cycle
- printing recycling labels on packaging materials, as a reminder to consumers
- making sure all plastic objects weighing 25 grams or more have contents labelled in detail, to facilitate recycling
- In addition, Compal designs all its products in accordance with WEEE (Waste Electrical and Electronic Equipment) standards, which require that at least 65% of the materials used are recyclable. For main notebook brand clients, Compal designs products to enable an even higher recycling rate (96%-100%).
- Optimising packaging
- Compal is constantly improving packaging design to reduce, simplify and make the optimum use of packaging materials, minimising their environmental impacts. Compal’s achievements in recent years include:
- In 2011, Compal launched its patented square package design, which not only requires fewer resources but also enables consumers to keep the package and use it as a storage box.
- In 2012, Compal replaced EPE (Expanded Polyethylene) materials with 100% recyclable cardboard.
- In 2014, Compal increased the number of products per pallet from 78-84 to 102-120.
- In 2015, Compal optimised EPE cushions for notebook PCs by consolidating the old 3-piece design into a single piece. By doing so, Compal reduced the use of packaging materials by 50% and materials surface by 48%.
- In 2017, Compal greatly increased the use of automated equipment for picking, sealing, labelling and exterior examining before shipping, to reduce the human error rate.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 301-1 Materials used by weight or volume
2) Disclosure 301-3 Reclaimed products and their packaging materials
Disclosure 301-1 Materials used by weight or volume corresponds to:
- Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Materials efficiency
- Sustainable Development Goal (SDG) 12: Ensure sustainable consumption and production patterns
- Business theme: Materials efficiency/recycling
Disclosure 301-3 Reclaimed products and their packaging materials corresponds to:
- Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Resource efficiency of products and services
- Sustainable Development Goal (SDG) 12: Ensure sustainable consumption and production patterns
- Business theme: Resource efficiency of products and services
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References:
1) This case study is based on published information by Compal, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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