Few companies have integrated ESG principles into their business practices and manufacturing processes to the degree that VP Components has. From product development to manufacturing and employee relations, ESG is central to the company’s philosophy and practice.
ESG has been an orienting principle for the last few years. Most companies have focused on the “E”, or the Environmental aspect, without much attention paid to the Social and Governance dimensions.
LeMonde diplomatique’s February 2025 investigation into questionable foreign labor employment practices on the part of several Taiwan companies brought social and governance issues into the spotlight. “We are the first one from Taiwan from the bicycle industry to apply the zero-replacement fee for foreign laborers,” said VP sales and marketing director D.C. Liao. “Usually, laborers need to pay their local agent to come to Taiwan, and also, they also need to pay again for Taiwan agent. So, for the first few months, their take-home pay is reduced because they are paying those debts. We also carry out a vendor audit to make sure our tier two vendors follow Taiwan’s labor regulations.”
Complementing these social practices, VP Components products incorporate recycled material, renewable energy and green packaging to minimize carbon emissions. “The new patented buckle-design saddle does not use adhesives, which can otherwise find their way into ecosystems. The buckle allows for quick disassembly, making maintenance easier and contributing to a longer product life span,” said Liao.
The VIBE grips are PFAS free and include an antimicrobial function. ISO lab tests show a reduction of Staphylococcus aureus and Escherichia coli, 2.98>2(R) and 6.02>2(R) respectively. “They are also designed to reduce vibration through damping to a -20 percent displacement, which reduces pressure on the hands,” he said.
Now, the company is leveraging its ESG edge along with in-house CNC processing to enter the dropper post market. “It’s the lightest in the market at the moment. The base, raw material is low carbon aluminum, which has a lower carbon footprint compared to commonly used aluminum,” said Liao. “And because we also do all the CNC machining in-house, we can precisely control tolerances. Whereas other brands aim for a 0.1mm tolerance, we can achieve a 0.02mm tolerance. Overall diameter sizes covered are 27.2, 30.9, 31.6 and 34.9. We have a 470g version and a 450g light version. Where other brands deliver dropper posts in the range of 490 to 520g, ours are the lightest,” he said.
Another notable new product is the VP-F57 folding pedal made from extruded recycled aluminum and using PA6 boron steel ball bearings. “The pedals have passed the rigorous Zedler Advanced Plus XXL (ADV+ XXL) testing regime,” said Liao.