Commitment and Policy

Environmental Policy

LITE-ON reformulated its low carbon strategy after the Paris Agreement to achieve environmental sustainability through low-carbon products and green operations. The company continues to improve its green design, climate change and energy management, water resource management, waste and resource management, and green factory abilities in order to respond appropriately to stakeholder expectations on environmental issues and build up LITE-ON's resilience in sustainability issues.

We commit to adopting science-based targets (SBTs) in the calculation of reasonable emissions for LITE-ON given the Global Carbon Budget. In 2018, we set a target to reduce carbon emission per unit of revenue by 39.3% by 2025 and to increase the energy conversion efficiency of our power supply products by 2% by 2023. We performed a SBTi compliance review on the target to support the Paris Agreement goal of keeping a global temperature rise this century well below 2 degrees Celsius.

We commit to support the Task Force on Climate-Related Financial Disclosures (TCFD) and follow the TCFD framework to disclose climate change information and related risks and opportunities. The commitment is made also in support of the Commit to Action campaign launched by the Carbon Disclosure Project (CDP) and We Mean Business Coalition.

At LITE-ON, we believe that paying close attention to the interests of our stakeholders and the environment lays a solid foundation for fulfilling our vision of being "the best partner in optoelectronics, energy conservation and smart technologies". Therefore we work hard to strengthen sustainable management and other sustainability-related governance mechanisms in the company. A resolution was passed to create the Corporate Sustainability Committee directly under the board of directors in April 2019. The committee is the highest authority in sustainability-related operations. Meanwhile, we also work to improve environmental management performance and environmental risk management to respond to UN SDGs.

As part of the commitment to a sustainable environment, LITE-ON adheres strictly to the responsible production strategy in the Sustainability Strategy and Blueprint, and develops environmental sustainability strategies around low carbon products and green operations. Meanwhile, LITE-ON continues to support climate change and energy management, water resource management, and waste management. The goal is to respond appropriately to stakeholder expectations on environmental issues and build up LITE-ON's resilience in sustainability issues at the same time.

Green Operations Action Plans

To achieve green operations and counter the uncertainty created by climate change, LITE-ON works on improving environmental management performance and environmental risk management. The goals include reducing the impact of manufacturing activities on the environment and facilitating the development of a circular economy so to counter the challenges of global climate change risks and emerging technologies.

Setting aggressive carbon reduction targets

● LITE-ON takes the Sector Based Approach of the SBT setting approach to set the aggressive targets to reduce operational (scope 1 and 2) and the value chain (Scope 3) GHG emissions. The operational target was set at a 39.3% carbon reduction per unit of revenue by 2025 with 2014 as the base year and the value chain target was set of a 2% improvement of energy conversion efficiency for power supply products by 2023 which is equivalent to a 28.8% reduction of GHG emissions per unit product, with the products and technologies developed in 2016 as the baseline. This SBT target was approved by the Science Based Targets initiative (SBTi) in April 2019, and allow LITE-ON to become the top 50 SBTi certified company in Asia and the second in Taiwan.

● To demonstrate the commitment to becoming a benchmark firm in carbon management, LITE-ON extends carbon management to value chain and set a value chain target to reduce the total Scope 3 GHG emissions by 2 million tons by 2030 with 2018 as the base year. LITE-ON works with value chain partners to combat climate change and global warming together.

Reducing the environmental impact of own business activities

● LITE-ON continues to develop optimized production processes and better plant operations. The aim is to enable more efficient energy and water utilization throughout the process of development, production, consumption, and disposal, then, to achieve minimum waste and maximum resource recycling and reuse.

● Our goal is to build highly adaptive smart factories where resources are fully integrated. We also achieve better operational performance through the in-house VFD hydraulic energy saving system, high-performance VFD controller, and inter-divisional collaboration. In 2019, the Thai plant launched a project to completely overhaul energy efficiency for equipment. The project deploys parallel VFD controllers and other measures, and expects to reduce power consumption by 2,170 MWh per year.

● LITE-ON was not involved in any significant environmental violation event in 2019. (A significant environmental violation event is defined as a situation where the administrative fines have over 1 million NTD as stated in the "Taiwan Stock Exchange Corporation Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities"

Promoting circular economy

● As a responsible corporate citizen, LITE-ON also supports SDG 14, which calls for the reduction of marine pollution. In 2018, this company launched the Penghu Coastal Styrofoam Waste Cleanup campaign, which was corporate with the Penghu County Government, to remove the marine waste of Styrofoam in Penghu. In 2019, this company removed 30 tons or more of Styrofoam marine waste and transformed the materials from polystyrene (PS) to high impact polystyrene (HIPS). Then, this material can be used as the PCR materials for the products which this company develops to reduce 327.8 tons of CO2e emission every year, based on 100 tons of Styrofoam marine waste this company used.

Environmental Management Goals

LITE-ON set new short-, medium-, and long-term environmental management targets for use of energy and resources and discharge of pollutants in 2018. LITE-ON submitted the carbon reduction targets for a formal SBT compliance review to demonstrate its support for the effort to keep global temperature increase below 2 degrees Celsius. The waste reduction targets include a long-term target to reduce waste by 3,300 tonnes on an absolute basis by 2025. It is consistent with LITE-ON's campaign for a circular economy.


Environmental Sustainability ▸