Commitment and Policy

Environmental Sustainability Commitment and Policy

LITEON strives to improve corporate governance mechanisms in the company for better sustainable management. As the highest authority in LITEON's sustainable operation, the Corporate Sustainability Committee reports directly to the board of directors. In the environmental aspect, the Environmental Sustainability Sub-committee under the Corporate Sustainability Committee is chaired by the head of manufacturing and is responsible for green operations at the factories. The Green Design Sub-committee is chaired by the head of RD and is responsible for the design and development of low-carbon products. We aim to improve environmental management performance and risk management to achieve our environmental sustainability vision and to respond to the Sustainable Development Goals (SDGs).

We commit to adopting science-based targets (SBTs) to support the Paris Agreement goal of keeping a global temperature rise this century well below 2 degrees Celsius. In 2019, our SBT target which 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, was approved by the Science Based Targets initiative (SBTi) and allow LITEON to become the top 50 SBTi certified company in Asia and the second in Taiwan. 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 CDP and We Mean Business Coalition.

To fulfill our environmental commitment, LITEON adheres to the responsible production strategy in the Sustainability Strategy and Blueprint and develops environmental sustainability strategies around green operations and low carbon products. Meanwhile, LITEON continues to take actions on climate change and energy management, water resource management, waste recycling, and reuse, and green product design and management, to increase resource utilization efficiency, reduce the environmental impact of production activities, and build up LITEON's climate resilience and environmental sustainability.

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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.

Circular Economy

  • In support of SDG 14, LITEON starts to reduce marine pollution by working with social enterprises in helping the Penghu County Government. The campaign has removed a total of 35 tonnes of Styrofoam marine waste since 2018. Meanwhile, the recycled Styrofoam is sent to ITRI for mixing and modification operations. The modified recycled plastics are used to make keyboards and mice. LITEON is the world's first manufacturer to introduce Styrofoam marine waste into electronic products.

  • In 2020, LITEON finished developing containers that can reduce the volume of Styrofoam marine waste onsite. The company donated to the Penghu County Government and the Kinmen County Government the world's first containers that can process Styrofoam marine waste onsite and reduce its transportation volume significantly by 90%. These containers had processed 20 tonnes of Styrofoam marine waste by the end of 2020. The project also won the 2nd Taiwan Circular Economic Awards Product Award and the 2020 PwC's CSR Impact Awards Gold Prize.



Internal Carbon Pricing

  • LITEON has adopted the shadow carbon pricing methodology and considered the carbon trading regulations in Taiwan and the market prices in Mainland China to determine internal carbon prices for main operation sites in Taiwan and Mainland China since 2018. The approach serves to reinforce the decision-making on the energy efficiency and carbon reduction measures and policies in the company.

  • As part of the strategy to reduce carbon emissions to fulfill our SBT promise, LITEON passed a new internal carbon pricing management policy in 2020. Starting in 2021, LITEON will charge internal carbon tax at USD 1/tonnes CO2e from business units that exceed their annual emission caps. This policy aims to reinforce the carbon reduction investment action for business units. LITEON also expects to raise the rate gradually in the future and invest the funds in carbon reduction technologies or renewable energies.



Product Green Design

  • The LITEON CSR code of conduct is based on life cycle thinking. With the 3Rs rule added to the product development process, the company engages in green product design, and develops nontoxic, easy to assemble/disassemble, and environmentally friendly products.

  • AC metering IC integration technology is used in server power products to reduce the use of resistors, multilayer ceramic capacitors, metal-oxide-semiconductor field-effect transistors, and other active/passive components. The technology also reduces power consumption by 0.034W while metering IC is working, and reduces 51.81 tonnes of carbon emissions during the acquisition of raw materials and the use of products.



Reducing the environmental impact of own business activities

  • LITEON 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. The company also tries to achieve minimum waste and maximum resource recycling and reuse.

  • Implementation of the energy recycling system (ERS) enables power consumed by burn-in processing to be recycled and reused. The system helps us to reduce power consumption by 5.8 GWh per year, which is the equivalent of reducing 4,853 tonnes of carbon emissions per year.



Environmental Management Goals

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Environmental Sustainability ▸

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