Green Product
Development of products that are aligned with global trends and the building of customer trust are the keys to sustainable corporate development. The Compal product design philosophy is based on the “Product Life Cycle.” The potential environmental impacts that our products may cause at different stages of their life cycle are taken into account, starting from the purchase of raw materials, manufacturing, shipping /delivery, usage by consumers and ending with disposal and recycling. During the product design phase, our R&D team not only pays attention user requirements, functionality and added value but also strives for “minimization of environmental burden” at every stage. Product development and design therefore follows this approach. We also assist customers with applying for environmental labels that include life cycle assessment based on the requirements of their sales region.
In 2023, 79 products passed EPEAT including 56 Gold (EPEAT 2018) medals. 15 products also passed Taiwan’s environmental labeling requirements, demonstrating the proactive action taken by Compal in product design and manufacturing as well as the establishment of a product development and design philosophy based around environmental protection.
Compal's Green Product Life Cycle
Green Design
In terms of green design and patents, Compal draws up decades of industry experience and has established a product design philosophy that conforms to the circular economy. The core strategies include material selection, energy-efficient design, and ease of disassembly. These are all important elements for the realization of a circular economy. At the same time, we pay close attention to international trends as well as stakeholder/customer requirements. We aim to optimize the ecological performance through eco-friendly design. In addition, we launched internal innovation challenges that incentivize employees through prize money and awards in order to identify more possibilities.
To progressively realize the goals of the circular economy, the Company now requires business notebook compute products to use more than 5% recycled materials. This target aims to encourage the recovery and reuse of products at the end of their service life in order to reduce resource waste and environmental impact. The Company has successfully developed 36 compliant R&D models and put them into mass production so far in a demonstration of our commitment to environmental responsibility.
Raw Material Management
International attention to chemical management means that chemical regulations are now being updated with increasing frequency and cover more items as well. Compal responded to this trend by evaluating the feasibility of full material declaration (FMD) and data collection in 2015.
Under the traditional material management method, a controlled material list is published by Compal listing all restricted substances. Vendors then check each item on the list to see if they comply with the Compal controlled material standard. This type of negative listing allow vendors to check whether the parts they supply comply with current regulations. Since only a declaration is made on controlled substances, if materials not in the Compal standard is added to international regulations then there is a gap in control until Compal standards are updated.
FMD asks the vendor to disclose all materials in their part rather than just the items specified in the Compal controlled material standard. All chemical materials and their proportions within the product must be listed. Once there is FMD for all parts in a product, a full picture of the product’s chemical composition emerges so that changes in material regulations and requirements can be responded to in a timely manner.
There were three projects in the first lot to implement FMD after the system went live. At the time, disclosure rate was 25% of the product weight. Continued communication with suppliers, internal education & training, and system improvements saw 65 projects achieve 90% disclosure by Notebook product weight in 2023. The number of projects and disclosure rate have held steady. In the future, Compal will continued to collect FMDs for more parts and components then compile them into a complete and transparent materials database. We will engage in the proactive identification and analysis of high-risk materials to ensure that the products we manufacture are friendly to the environment and human health.
REACH (Registration, Evaluation, and Authorization of Chemicals) is a set of regulations imposed by the European Union to control imported chemical substances. REACH controls use and importation of chemical substances by implementing a series of measures including registration evaluation, authorization, and mandatory disclosure. Compal requires suppliers to make full disclosure of SVHC contents in all supplied parts, and encourages them to take step towards reducing and eliminating uses of such substances as early as possible. The hazardous chemical substances included in the authorized list in Appendix XIV of the EU Chemical Policy are also included in Compal's environmental hazardous chemical substance management-related regulations to restrict their use. According to the update of international hazardous substance-related requirements, Compal will also update the environmental-related controlled substance management regulations with the requirements.
The development and mass production of halogen-free wearable devices was initiated in 2017. The continued development of products more friendly to the environment meant that there are now 73 halogen-free products in mass production as of 2023.
Compal is not in an energy-intensive sector and in our examination of product lifecycles as a whole, we have found that the greatest portion of energy consumption comes from the use of our products. In light of the fact that different regions/countries adopt different standards, Compal has thus chosen to use the US Energy Star as the guideline in the assessment of products’ energy-saving performance. Compal has been systematically developing its software and hardware design capabilities, introducing modular designs, and using checklists that have been independently developed by relevant departments to ensure compliance of its products.
In 2023, 116 notebook products developed by Compal entered mass production. 92 models passed Energy Star certification in a demonstration of Compal’s efforts and achievements in improving product energy efficiency.
Compal is continuing to monitor and the latest developments in energy regulations, so that the Company can plan and prepare ahead, assess risks in advance, and effectively ensure product compliance with the constantly evolving regulations and certification requirements on energy efficiency. Adopting this level of sensitivity and proactive response to regulatory trends will help ensure product compliance and competitiveness in the global market.
Compal considers waste reduction and resource reuse at the disposal stage during the design phase. Through internal R&D projects, we actively introduce recycled materials and low-pollution alternative materials, continuously innovating green product designs to improve recyclability and reusability. This approach aims to reduce waste generation at the end-of-life stage of the product lifecycle, thereby minimizing negative environmental impacts.
In 2023, Compal assisted with calculating the recycling ratio for 54 notebook models. In 49 of the cases the recycling ratio was greater than 85% and 7 cases actually exceeded 95%. This showed that Compal not only took into full account EU WEEE Directive’s target recycling ratio of 65% during the design phase but also exceeded that requirement.
Packaging materials play an important role before end-products reach the consumers as they offer the cushion needed to protect goods from collision during transportation. Compal has continuously improved packaging design with the goal of reducing, simplifying, and making optimum use of packaging materials for a lesser impact on the environment.
► An improvement project for notebook computer packaging in 2020 realized savings in material and labor by adjusting the shock absorption structure and eliminating inserts. An internal assessment estimated savings of NT$5,581,620 from the project.
► Further optimizations to notebook computer packaging were made in 2021. Optimizing the label printing method, introduction of automated box folding and procedural improvements, and reducing the packaging size to improve pallet efficiency resulted in annual cost savings of NT$4,607,810.
► In 2022, weight and plastic reduction efforts for packaging not only reduced their environmental impact but also yielded significant energy savings. An internal assessment estimated savings of NT$841,856 were achieved this year.
► In 2023, we focused our efforts on optimization of packaging materials. We built on our plastic reduction efforts and increased the use of paper-based packaging to 16.7%. 36.9% of packaging was also FSC-compliant.
Ensuring Customer Safety and Health
According to the ESG philosophy, if a product causes a hazard that harms customer health or safety, this will not only negatively impact on Compal’s reputation for professionalism among its peers but may also lead to massive consumer as well. Compal therefore knows that ensuring the health and safety of customers will help the Company maintain its organizational reputation, legal and financial stability, market differentiation, and employee morale. These will in turn help strengthen the corporate spirit of sustainability. There were no violations of product safety specifications in 2023. Product problems, causes, impacts, and solutions recorded in repair reports are periodically compiled by the repair department. To ensure that products manufactured by Compal are fully safe under normal usage by preventing the six major hazards of accidental electric shocks, energy risks, mechanical injury, radiation, chemical hazards, and high-temperature burns from the product casing or internal parts/components, the product safety concept is incorporated by the Compal product safety department during the design phase for notebook, AIO desktop computer, and tablet PC products in accordance with the IEC 60950-1 and IEC 62368-1 international standards developed by the International Electrotechnical Commission (IEC). In-house testing is completed by the Compal safety lab before a third-party verification body is engaged for witness testing to ensure that all products are built to international standards and obtain safety certification. The safety certification for international standards are then used to apply for product safety certification in the designated country or region (e.g. Korea, India, Taiwan, North America, Europe, Middle East etc.) based on brand customer’s own market strategy.
The Compal product safety department and brand name customers collaborated again in 2023 to co-design a tablet PC for special environments. The UL 12101 9th edition and CSA C22.2 No. 2213 3rd edition standards governing “Standard for Use of Nonincendive Electronic Equipment in Hazardous Locations” was introduced by the product safety department. The products were also certified by a third-party body so that the end user can safely use a product in the Class 1, Division 2 hazardous locations designated by the aforementioned regulation. This prevents dust or flammable gas explosions over a wide area due to static on equipment circuit or tiny sparks. The result is an “explosion-proof (explosion prevention) tablet.
Compal has been committed to providing green products to the market and the clients for years, carrying out the concept of sustainability from cradle to grave, in every phase of product life cycle. From product design, material management, through manufacturing, product usage, to disposal amd recycling, we uphold and show our belief of "minimizing environmental damage". We have set relevant KPIs to review the result of product sustainability management periodically.
By continuous tracking, evaluating and improving the KPIs, we persist in fulfilling our commitment to share and support the value of sustainability.
Sustainability Management of Raw Materials
We are committed to managing and utilizing raw materials in accordance with the principles of sustainable development, while actively engaging with both internal and external stakeholders. We are dedicated to searching for and developing procurement, application, and management models for raw materials that aim to reduce and minimize environmental and social impacts. Our goal is to pursue the sustainable development of both the environment and society.
- Develop management strategies and implement corresponding action plans aimed at reducing the consumption of energy and water resources, as well as minimizing the generation of waste and pollutants associated with the management and application of raw materials
- Participate in industry-wide joint initiatives or workshops focused on sustainable raw material issues, collaborating with value chain and business partners to promote the adoption of sustainable raw material standards and best practice solutions collectively.
- Encourage/require raw material suppliers to implement and obtain relevant third-party verification.
- Continuously enhance the proportion of recycled raw materials of all types utilized in our products and broaden their range of applications.。
- Avoid sourcing raw materials from sites that are recognized as globally or nationally important for biodiversity conservation areas, unless suppliers have adopted measures such as avoidance, minimization, rehabilitation, and compensation to minimize ecological impacts.
- The concept of this policy aligns with Compal's sustainability-related policies and guidelines. These include the Sustainable Development Best Practice Principles, Compal’s Supplier Code of Conduct, Biodiversity & No Deforestation Policy, and Compal Environment Health and Safety Policy. By upholding the management responsibility for green products, we aim to reduce the environmental burden of products throughout their life cycle. This effort is part of our commitment to the sustainable development of the environment and society.
