Message to Stakeholders

Dear Stakeholders,

Given an industry undergoing transformation and the challenges of climate change, LITE-ON sets itself to realize the vision of sustainability by being "Best Partner in Opto-Electronic, Eco-friendly, and Intelligent Technologies" for its customers around the world. In 2017, LITE-ON continued to focus on IoT applications in cloud computing, LED lighting, auto electronics, industrial automation, and smart healthcare as its five key areas of transformation. In particular, cloud applications, LED and outdoor lighting, AI smart home systems, and consumer electronics contributed to close to 40% of the revenue in 2017, showing the results of LITE-ON’s effort to cultivate new businesses, and reflected its determination to transform and build a hundred-year-old company.

LITE-ON believes that business activities must be sustainable; social and environmental sustainability are also part of corporate social responsibility. We keep examining our responsibilities and opportunities for implementation in environmental conservation and CSR. LITE-ON adopted the United Nations' sustainable development goals (UN SDGs) in 2016, and integrated them with our core values in ESG practices. We focus on a total of eight sustainability goals and examine our roles and potential contribution in sales, operation, and organization, setting specific targets to achieve SDGs with the use of “value chain.” LITE-ON has been listed as a constituent stock on the Dow Jones Sustainability Index (DJSI) for seven years in a row since 2011, and has had a place on the Morgan Stanley (MSCI) Sustainability Report for four years in a row.

LITE-ON reformulated its low carbon strategy after the Paris Agreement to respond to environmental issues adequately. We commit ourselves to implementing the Task Force on Climate-Related Financial Disclosures (TCFD), making climate related financial statements one of the means of stakeholder communication and analyzing potential opportunities and threats in climate change in support of the CDP and the We Mean Business Coalition's “Commit to Action” initiative. In terms of execution, LITE-ON continues to develop green design, green factory, and operational efficiency, and coordinates partnerships among clients, industry players (alliances), and supply chains to develop efficient energy creation, conservation, and conversion products, and energy management solutions aimed at achieving more effective environmental management and meeting the challenges of climate change and their effects.

In 2018, given the Global Carbon Budget, LITE-ON starts using scientific and weighted methods to calculate and set a reasonable carbon emission reduction target for the company. In addition, LITE-ON formally submits science based targets (SBTi) for compliance review. The medium- and long-term environmental management targets are: (1) a reduction per unit revenue of 39.9% by 2025 compared to 2014; and (2) a 2% (science based target*) increase in energy conversion efficiency of high end server power supply units by 2023 based on products and technologies developed in 2016, to demonstrate LITE-ON's support for the effort to keep global warming under 2℃.

Regarding strategic sustainable development, LITE-ON expands its core business in LED street lights around the globe, and invests in the Mercury Lamp Sunset Project in Taiwan, and has become Taiwan's largest LED street light supplier. A total of about 400,000 Leotek street lights illuminate the streets across Taiwan and help local residents and pedestrians stay safe on the road. In addition to offering complete smart street light planning and solutions that contribute to improved quality and energy efficiency of street lights across Taiwan, LITE-ON uses locally produced parts from local manufacturers, and works with local contractors to support the growth of local supply chain. We took Leotek street light in the 2017 Mercury Lamp Sunset Project and performed Taiwan's first social impact assessment on a product. The analysis measured the social return on more than 20,000 street lights replaced in Class 4 and Class 5 rural areas in Taiwan. The Social Value International certified result estimated LITE-ON’s contribution at a multiplier of 2.85. LITE-ON works with municipal governments, clients, suppliers, contractors and other stakeholders closely to achieve sustainability and initiate a chain of positive changes in the society.

We continue to make strategic plans for community involvement and engage local communities, charity organizations, and industry/government/academia stakeholders. We develop collaborative relationships and make long-term plans combining our core competencies and investment. We aim to contribute to progress in society, create social value, enhance our corporate image and increase our influence, and thereby boost employee loyalty and win trust of our stakeholders. In order to achieve our vision of a society full of multi-culture, education, creativity, and environmental sustainability, LITE-ON has been allocating resources to projects such as Community Assistance, the community college, and the LITE-ON Award for around 20 years. We also campaign for other projects such as educational support, corporate volunteering, and sustainable tech products as part of our effort to support and resolve issues including immigrants and social inclusion, teen education, aged population, shortage of lifetime learning resources, shortage of tech design and innovation talent, and environmental conservation. It is estimated that close to 34,000 people benefited directly from LITE-ON's charity work in 2017.

Looking forward, LITE-ON will continue enhancing its competitiveness and following its entrepreneurial approach to transform and strive for healthy growth and excellent business results under One LITE-ON. Given its commitment to sustainability, LITE-ON will keep working together with employees, customers, suppliers, shareholders, government agencies and competent authorities, NGOs, research institutions, communities, media and other stakeholders to create economic, environmental, and social sustainability values.

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LITE-ON Sustainability ▸

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