Message to Stakeholders

Dear friends and supporters of sustainability at LITE-ON,

In recent years, LITE-ON has been committed to transformation, seeking to elevate profitability with a realistic approach. With changes in operating models, adjustment to product portfolios, growth in revenue, and even creation of excellent profitability, LITE-ON builds on sustainable business development to become a centenarian corporation. In 2018, LITE-ON's two pillars for growth, cloud computing applications, and LED component/LED vehicle and outdoor lighting, reached nearly 30% of total revenue, with an over 20% year-on-year gain, demonstrating the achievement of LITE-ON's efforts in new business incubation and transformation. LIT-ON will continue to invest in stable core areas and develop promising new businesses into long-term dynamics for growth with strategic perspectives.

The global trend of valuing sustainable investment remains in the ascendant. ESG performance has become an important indicator for investors. LITE-ON has been listed as a member of the Dow Jones Sustainability Index (DJSI) for eight years in a row, since 2011 and has had a place on the MSCI ESG Leaders Index for five years in a row. In 2018, LITE-ON was listed in the inaugural Thomson Reuters Top 100 Global Technology Leaders. In Taiwan, LITE-ON was ranked top 5% in the 2018 Corporate Governance Evaluation Survey jointly implemented by the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx), listed as a constituent stock in the FTSE4Good TIP Taiwan ESG Index, awarded Commonwealth Magazine's Corporate Citizen Award in the large enterprise category by for the 12th time in 2018, and was awarded the Platinum Award, the highest honor, in the electronic and information manufacturing category in the 2018 Corporate Sustainability Report Awards from TCSA.

LITE-ON takes an active approach to environmental protection on issues such as extreme weather and environmental degradation. In 2018, LITE-ON announced its energy conservation and waste reduction target for 2025, setting goals in areas including carbon reduction, water saving, waste reduction, product energy efficiency and renewable energy usage. Regarding product development, LITE-ON follows life cycle thinking, from cradle to grave, and aims to achieve environmental friendliness management by working with upstream business partners in developing more eco-friendly parts or materials and becoming the best partner for downstream customers in low carbon emission, environmental friendliness, and sustainable value chain. By implementing various energy saving and carbon reduction improvements throughout the process from raw materials, production, distribution, and product use to disposal and recycling, LITE-ON managed to reduce greenhouse gas emission by a total of 50,152 tonnes in 2018, which was a 13.47% decrease in emission. Meanwhile, water consumption and waste were reduced by 17.54% and 12.54% respectively as well.

Furthermore, pollution by ocean waste has become the second largest threat to Earth after climate change. Surrounded by ocean, Taiwan is facing serious ocean waste problem. As part of its commitment to the community and to environmental protection, LITE-ON works with social enterprises that process Styrofoam-based ocean waste, the Environmental Protection Bureau of Penghu County, and LITE-ON suppliers in carrying out the "Penghu Coastal Styrofoam Waste Cleanup and Processing" campaign. The cleanup campaign had removed a total of 5 tonnes of waste by October 2018, and will continue with a target at 20 tonnes per year in the future. The removed waste is given to companies that use a special solvent process to reduce volume and turn the waste into recycled plastic resin for further use. To attract more attention to ocean waste, LITE-ON has teamed up with international environmental NGO to organize coastal cleanups. LITE-ON also invites its stakeholders such as suppliers, subsidiaries, and research institutions to join the effort and support the slogan "less plastic on the ground, less plastic all around". Coastal cleanups have taken place on beaches in New Taipei City, Hsinchu, Tainan, and Kaohsiung. More than 2 tonnes of ocean waste were removed in 2018.

LITE-ON actively urges employees to exercise regularly, caring for employees’ health. The company has been named one of the 2018 Certified Sports Companies again by the Sports Administration of the Ministry of Education. It has also been awarded Best Work in the Creativity Gold Award for Healthy Workplace by the Health Promotion Administration of the Ministry of Health and Welfare. LITE-ON continues to make strategic plans for community involvement and strives to create a multi-cultural, caring, creative, and sustainable society. Following strategies regarding community assistance, community college, LITE-ON Award, educational support, corporate volunteer system, and sustainable product designs, LITE-ON has embarked on the following projects: multi-culture and community volunteer training, counseling services for children and teenagers, adult education (including disabled and disadvantaged people), life-long learning platform, encouragement for creative technical designers, industry-academia collaboration to combine theory and practice, and development of clean and energy saving products and smart healthcare products. In 2018, 10,671 attended LITE-ON community assistance volunteer training, and 3,702 received small group and one-on-one volunteer counseling services; more than 114 college internships were offered; the LITE-ON Award received 1,303 submissions, and Xinyi Community College was named an excellent community college by the Education Department.

To achieve sustainable development, LITE-ON upholds its entrepreneurial approach and focuses on solid execution and advancement toward the vision of "Best Partner in Opto-Electronic, Eco-Friendly and Intelligent Technologies". LITE-ON's core values include "environmental sustainability", "tolerance and innovation", and "sustainable governance", consistent with the UN Sustainable Development Goals (SDGs) in green products, application and innovation, responsible manufacturing, employee development, and social impact. LITE-ON works with its stakeholders to achieve economic, environmental, and social sustainability.

LITE-ON Sustainability ▸