the Chief Sustainability Officer
In November 2022, while the world was still struggling to recover from the pandemic, no one noticed the arrival of a greater wave. The impact of ChatGPT swept across industries like a tsunami, changing the way we live and work. Many routine jobs may no longer be essential in future workplaces, and cross-disciplinary communication skills and the ability to quickly grasp trends and issues will become critical. The world of the future is filled with opportunities, and those who are brave enough to accept change and create new value will be able to seize these opportunities.
During the pandemic, many people talked about the resilience of businesses, but I often talked with my colleagues about the resilience of our psyche. True athletes have to compete against themselves every time they make progress. Resilience does not depend on external factors, regardless of whether it is smooth sailing or stormy weather. We must continue to move forward, and our only opponent is ourselves. While the AI revolution caught everyone off guard, the ability to quickly adapt and take advantage of the situation amid the changes is the key reason why LITEON has stood firm for over forty years in the face of rapid changes in the technology industry and paradigm shifts. AI can take over some human work, but only humans can create value. Humans are still the master, and AI can be transformed into IA (Intelligent Assistant) to become the best assistant for humans.
LITEON's Philosophy of Holistic Development in Family, Career, and Vocation
LITEON puts people first. We have established a corporate culture based on the world's most exceptional talent and continue to move forward through changes and challenges. At LITEON, you are not only a doer, but also a thinker, and we hope that you can be a dreamer. LITEON has created a force field based on will power where changes and innovation are possible, and gather together a group of dreamers, making brand recognition a force for gathering energy and moving in the same direction.
We took a series of measures with an overall perspective over the past two years to build employees' confidence and resilience for facing the future based on the spirit of mutual benefit and winning. We continued to optimize benefits and care, including the employee stock ownership trust and free employee meals with quality that rivals food courts, and complete family and child care policy to eliminate any worries that employees may have.
It is as mentioned in the book The 7 Habits of Highly Effective People by Stephen R. Covey, success is not only about career development, but also family, friends and vocation. Life is a marathon. You start out with integrity, your abilities and learning capacity push your forward, prepare to solve problems at any time, and make an all-out effort! At LITEON, we hope that everyone will live a life of abundance. This is why we not only focus on career development, but also actively participate in society to create a positive impact.
Small Store with Big Impact
We worked with partners in ocean issues in 2022, and helped farmers get through difficult situations. We took an entire year to prepare for the opening of LITEON Collection. LITEON Collection is not only a brand store, but also involved the collective efforts of many partnering social enterprises. The store serves as a platform for LITEON to exert its influence and spread positive values and ideals. LITEON actively reaches out to support values that are mutually beneficial in society.
We can see the imagination of these social enterprises and creators for a brighter future through the products that are selected. You might feel that this is a bit foolish or too stubborn at times, but some innovative models were successful under our collective efforts. The existence of this small store also reminds us to insist on the importance of our original intention, regardless of how many complicated difficulties, the most important original intention is that we must believe that we are absolutely capable of building a better world with our two hands.
In the future, we will continue to work with partners around the world to create a greener, healthier, and fairer future through technology. We expect ourselves to bring this vision to society and become a truly different brand to jointly face future challenges with the world.
When this report is published, the massive tsunami brought by AI will have already swept the industry, and the shadows of geopolitics will still be close by. Changes and conflicts remain the norm in 2022. Yet, where there is uncertainty there is opportunity, and whether companies train their resilience will determine if they can leap forward and seize opportunities in crucial moments. LITEON has never feared difficulty. This is because we have always risen through changes and continued to move forward through challenges brought by rapid changes in the technology industry for nearly half a century.
LITEON comprehensively upgraded green solutions in 2022, set the track for the future based on core advantages, and stepped on the gas. We believe that regardless of how the situation changes, green resilience will inevitably become the theme of the future, and energy is the core strategy. We must effectively expand our influence to respond to climate change. Besides gathering together our capabilities for R&D and technologies, we must also assist supply chain partners in developing carbon reduction capabilities and competitiveness, and drive the overall industry's low carbon transition.
LITEON 555 Carbon Reduction Action
LITEON obtained SBTi validation in 2018 and has committed to reducing carbon intensity by 39.3% in 2025. Our carbon reduction progress has been faster than the goals set for each year, and we further proposed the 555 Carbon Reduction Action in 2022. First, LITEON's carbon emission intensity per unit revenue must decrease by 5% each year. We completed a carbon footprint inventory for all products in 2022, and the carbon footprint of LITEON products must decrease by 5% for each new generation in the future. Our goal is the achieve net zero emissions in 2050 by reducing carbon emission intensity and carbon footprint.
Mutually Beneficial Situation Where All Parties Win
Enhancing the carbon reduction competitiveness of supply chain partners is indispensable to the low carbon design of processes and product materials. LITEON is one of the eight founding companies of the Taiwan Climate Partnership. We began exerting our influence on small companies in 2021, and began providing guidance and assistance to supply chain partners to compile their carbon inventory, raising their carbon reduction awareness and finding key carbon emission hot spots to formulate carbon reduction strategies. We provided guidance and assistance to a total of 65 partners to compile their carbon inventory in 2022, and expanded the energy conservation inspection of supply chain partner; the total electricity saving potential reaches 5.67 million kWh. We led 31 partners to join Taiwan Climate Partnership and implement climate initiatives.
Three Key Trends, LITEON Redefines Green Resilience of the Future
Aside from climate change, LITEON in 2022 reviewed the most influential green industries in daily life in the future. We believe that the three most important trends are green data centers, clean mobility, and energy efficient infrastructure. The core strategy in these trends is energy, so LITEON uses energy transformation, energy conversion, energy control, and energy storage as its core development strategies, combining over 30 years of electricity generation advantages to meet the requirements on higher flexibility, reliability, and resilience in micro power grids through high Watt, high density, and high conversion performance.
As a tech company with a long history, LITEON not only set excellent records, but is also the easiest company to work with and the most willing to share. Hence, we view our successes as great responsibilities instead of achievements. LITEON leads supply chain partners in building resilience and must ensure that it has a positive impact on society in economic, social, and environmental aspects. What is important about brands is not how well it is known, but rather the values and commitments it represents. We hope to exert our influence and use technology to create a green future that benefits mankind, and jointly move forward together with like-minded partners.
