Greenhouse Gas Inventory (GHG Scope 1 and Scope 2)

According to the ISO 14064-1:2006 standard for GHG emissions inventory, in 2021, LITEON's direct GHG emissions (Scope 1) and indirect GHG emissions (Scope 2) were 226,851.97 tons CO2e market-based, an increase of 1,113 tons of CO2e compared to 2020 (up by 0.49%), and 60,103 tons of CO2e (down by 20.95%) less than the base year 2014. The carbon intensity was 1.53 tons CO2e/NTD million of revenue, 5.35% lower than in 2020 and 25.16% lower than the base year 2014. The figures complied with the SBT reduction path target of 24.6% for 2021..

Greenhouse Gas Value Chain Inventory (GHG Scope 3)

To maximize the value of the LITEON value chain and to identify key factors to mitigating climate change, LITEON not only takes inventories of emissions from its own business activities, but has started performing full inventory-taking, verification, and disclosure of emissions from 15 categories in Scope 3 every year since 2018. The practice allows LITEON to follow emission hot spots along the value chain and extend carbon management to business partners on the value chain. In terms of Scope 3 emissions, LITEON sets 2018 as the base year, and aims to reduce cumulative value chain emissions (Scope 3) by 2 million tonnes by 2030. Meanwhile, the company continues to deploy green product design and other strategies and work with value chain partners to develop low carbon products and combat climate change and global warming together.

Direct and Indirect Energy Consumption

The bulk of energy consumption at LITEON operation and production bases is provided by purchased electricity, followed by steam and natural gas. 95% or more of total energy consumption at LITEON is indirect energy consumption. Direct energy use of fossil fuels includes diesel, gasoline, natural gas, liquefied petroleum gas (LPG), acetylene, and alcohol-based liquids, mainly used in emergency generators, forklifts, buses, restaurants, and dormitory boilers. In 2021, the inventory of total energy use of LITEON's bases was 1,384,209 gigajoules (GJ), an increase of 85,676 GJ (up by 6.60%) from 2020. The energy consumption intensity was 9.32 NTD million of revenue, a increase of 0.39% compared with the energy consumption intensity in 2020, which was mainly due to the effective implementation of energy-conservation measures, etc.

Waste Management, Recycling and Reuse

LITEON follows the ISO 14001 standard and installs full-time units to be responsible for waste manageLITEON has followed the ISO 14001 standard to organize a specialized unit that effectively tracks the source and volume of waste with the criteria of maximizing the use of resources and minimizing waste production. It promote green product design and waste management measures, to minimize the production waste increase the life cycle of each raw material, enhance the higher circulation and reuse the waste, to achieve waste reduction targets. LITEON selects qualified waste disposal operators that can effectively handle waste for disposal, and conducts audits on the disposal operators through on-site or form- based methods to confirm that waste disposal operators are properly handling disposal, so as to ensure that the waste produced will not have a significant impact on the surrounding environment.

LITEON's waste recycling solutions include reusing or reducing packaging materials, plastics, cardboard and cartons, recycling alcohol and selecting pallet to reduce waste generation. In the selection of pallets, LITEON coordinates with upstream suppliers to use more durable pallets. Using the Guangzhou plant as an example: more durable plastic pallets are used to improve the utilization rate of pallets. For loading, the cartons were changed to plastic cartons to improve the recycling rate. The recycling rate of pallets reached 99.2% and the reusing rate of plastic cartons reached 99.5%. In terms of packaging, by reducing the use of cardboard, LITEON improved the utilization rate of cardboard and reduce the procurement by about 20% a year. In terms of waste disposal, in addition to hiring qualified waste collection and disposal service providers to handle incineration and processing for reuse, LITEON adopts the responsible production philosophy, and conducts regular supplier audits to ensure waste is properly handled.

LITEON defines waste as materials after operation or production that will no longer enter the process stage. The total amount by category is calculated by waste disposal service providers upon exiting the premises. General industrial waste treatment methods include landfill treatment and incineration treatment (with / without energy recovery), and hazardous industrial waste treatment methods include landfill treatment, incineration treatment (including/not including energy recovery), and resource and regenerating. The total waste volume in 2021 was 18,596 tons, a reduction of 1,916 tons (9.34% reduction) compared to the total waste volume in 2020. The waste intensity was 0.126 tons / NTD million of revenue in 2021, down by 14.97% compared to 2020. LITEON will continue to improve waste management and work towards the goal of reducing absolute waste intensity by 10% by 2023 as compared to 2020.

Water Management and Target

Water Management

LITEON builds water management based on the ISO 14001 environmental management system. The manage mechanism are water management, water-risk analysis, target setting and continuous water conservation to manage and reduce water volume. Water source in LITEON plants is from tap water which is mainly for employees’ daily use and supporting equipment within the plant. LITEON ensures that the quality of the discharged water meets the requirements of local environmental protection authorities and does not cause environmental burden. A small amount of production wastewater is treated by the water treatment facilities within the plant (treatment such as natural settlement method, chemical coagulation method) before discharging. Part of the discharged water drained through sewer to the wastewater treatment plant.

Water Risk Assessment

LITEON identifies areas with higher risk of water management based on external tools and internal assessments. The external tools used to analyze potential impacts on water resources at major operations include the WRI tool of the World Resources Institute and the context of RCP 8.5 of IPCC guidelines, and we performed internal assessment by on-site assessments. We have identified areas with high risk in water resource management, including factories located in Guangxi, Vietnam, Thailand and India. Furthermore, LITEON assesses water quality and the flooding risk in areas with high risk. By improving water quality, the plant can improve the efficiency of the air-conditioning system and reduce the volatilization of water. LITEON improves the water quality in areas with high water risks to reduce the load on the air conditioning system, improve the efficiency of the equipment and reduce water evaporation. The Indian plant had put forward a response plan for water quality improvement and installed water quality conversion equipment in 2022 to improve the water quality, which also benefits the environment and employees.

Target execution and monitoring

In 2021, LITEON set a target of 6% absolute water reduction by 2023 (2% per year) with base year of 2020. In terms of tracking water management, LITEON uses a data-based central system to monitor the water data of each major operating site around the world and actively contrast the water data with the same month of the previous year to maintain reasonable water use and track the effectiveness of water conservation/water recycling. Total water consumption in 2021 was 2,539,346 m3 (reduction of 0.62% from 2020), and water intensity was 17.32 m3/NTD million revenue (reduction of 6.23% from 2020). In terms of improving water quality and water conservation and reusing, the implementation measures include effective management and recycling of wastewater, reviewing of water-saving appliances, strengthening leakage prevention equipment, improving process water recovery rate and reducing the water evaporation rate of cooling water towers, and daily management of each plant such as education and promotion etc. The total recovered water volume in 2021 was 112,655m3 (reduces 34% comparing with 2020).

Environmental Management Targets and Implementation

Environmental Sustainability ▸