Greenhouse Gas Inventory (GHG Scope 1 and Scope 2)

According to the ISO 14064-1:2018 standard for GHG emissions inventory, in 2022, LITEON's direct GHG emissions (Scope 1) and indirect GHG emissions (Scope 2) were 185,288.60 tons CO₂e (marketbased), a decrease of 41,563.37.15 tons of CO₂e compared to 2021 (down by 18.32%), and 101,666.66 tons of CO₂e (down by 35.43%) less than the base year 2014. The carbon intensity was 1.24 tons CO₂e /NTD million of revenue, 18.45% lower than in 2021 and 38.97% lower than the base year 2014. The boundary sets as the manufacturing plants and subsidiaries where revenue accounts for more than 1% comparing with the total revenue. The figures complied with the SBT reduction path target of 28.51% for 2022. We increase carbon intensity target to 5% per year in 2023.

Greenhouse Gas Value Chain Inventory (GHG Scope 3)

To maximize the value of the LITEON value chain and identify key factors to mitigating climate change, LITEON not only conducts inventories of emissions from its own business activities and but also references ISO 14064:2018 and GHG Protocol standard. The practice allows LITEON to follow emission hot spots along the value chain and extend carbon management to business partners on the value chain through verification, and disclosure of emissions. LITEON used materiality identification standards, consideration of assessment factors such as emissions, improvement potential, and quantification methods, to identify emissions from upstream raw materials used in products and services, emissions from upstream water treatment, and emissions from upstream fuel and energy activities for 2022's Scope 3 inventory. With a total of 12 categories revealed in Scope 3/ Categories 4 to 6, LITEON continues to work with value chain partners to develop low-carbon products through strategies such as green product design to combat climate change and global warming.

Direct and Indirect Energy Consumption

The majority of energy consumption at LITEON's operation and production sites comes from purchased electricity, followed by steam, with 97% or more of the total energy consumption being indirect. LITEON's direct energy consumption comes from the use of fossil fuels such as diesel, gasoline, natural gas, liquefied petroleum gas (LPG), acetylene, and alcohol-based liquids, primarily used in emergency generators, forklifts, buses, restaurants, and dormitory boilers. In 2022, the total energy consumption inventory of LITEON's bases was 1,213,542 GJ, a decrease of 147,541 GJ (10.8% drop) from 2021. The energy consumption intensity was 8.15 GJ/NTD million of revenue, a 10.98% decrease compared to the energy consumption intensity in 2021. This decrease was primarily due to the effective implementation of energy-conservation measures.

Waste Management, Recycling and Reuse

LITEON 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 promotes 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 formbased 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.

To further implement LITEON's waste recycling philosophy, we introduced UL 2799 Zero Waste to Landfill statistic at our sites. We achieved the platinum level in the Dongguan factory, and also introduced this statistical method to other factories. Therefore, we can calculate waste statistics on the site more accurately. We not only increase the waste conversion rate and reduce the waste output, but also reduce the amount of resource recovery and improve the resource recovery rate. When carrying out removal, we also ensure that the waste disposal method of disposal service providers complies with local regulations.

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. 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 of waste discharged is calculated as the total weight of waste weighed by the waste treatment unit at the time of leaving the factory. Waste treatment methods include landfill, incineration (including/not including energy recovery), and recycling for reuse of resources. Due to the introduction of the concept of zero waste to landfill, the statistical method is inconsistent with the base year data, so the waste target has been re-set to reduce waste intensity by 2% per year with 2022 as the base year. The total waste volume in 2022 was 26,301 tons the waste intensity was 0.177 tons / NTD million of revenue in 2022. LITEON will continue to improve waste management and work towards the goal of reducing absolute waste intensity by 6% by 2025 as compared to 2025.

Water Management and Target

Water Management

LITEON has established an environmental management system based on ISO 14001 to manage water resources. Water consumption at LITEON plants was sourced from tap water and used primarily for employees' daily needs and for plant equipment. On the drainage system, LITEON ensures ensure that the quality of effluent meets requirements of local environmental protection agencies and does not cause environmental burden. A small amount of industrial wastewater is treated by the wastewater treatment facilities inside the plants (by methods such as sedimentation or chemical coagulation), and discharged when the treated wastewater meet the local regulatory requirements. All wastewater produced is either properly treated or discharged to sewer areas. The discharge of water has no significant impact on the water body.
In 2022, water recycling volume is counted each cycle, and the efficiency of equipment for recycling water is improved. Thus, the amount of water recycled has increased significantly compared to 2021. Total water consumption in 2022 was 290,810 m³, an increase of 178,155 compared to 2021 (increased by 158.14% by 2021).

Water Risk Assessment

Areas with higher risk in LITEON's water resource management are identified using external tools and internal evaluation methods. External tools used to analyze the potential impact of main locations of operations on water resources include WRI tools and the scenario RCP 8.5 in the IPCC guidelines; internal evaluation is conducted via on-site evaluations, which identify higher risk areas in LITEON's water resource management include Tianjin, Vietnam, Thailand and India. LITEON improves the water quality in areas with higher risk, in order to lower the burden on the air conditioning system, improving equipment efficiency and reducing water evaporation. The India plant has proposed a response plan for water quality improvement, and installed water quality conversion equipment in 2022 to reduce risks to the environment and employees.

Target execution and monitoring

In 2021, LITEON set a target of 6% absolute water reduction by 2023 (2% reduction per year) based on 2020. To reduce LITEON's water withdrawal volume in each area. In terms of tracking and management, LITEON uses a centralized data system to obtain plant data and monitor the water resource consumption of major locations of operations worldwide. We compare it with water withdrawal information in the previous year to maintain reasonable use of water resources and track water conservation/recycling results. Total water consumption in 2022 was 2,121,945 m³(16.4% lower than 2021) and the intensity was 14.26 m³ NTD million of revenue (17.7% lower than 2021).

LITEON promotes the improvement of water quality and water conservation measures. These measures include implementing the effective management and resourcization of discharged wastewater, inspecting water-saving appliances, strengthening leakage prevention equipment, improving the recovery rate of process water and reducing the water escape rate of cooling towers. LITEON also strengthens daily management practices such as training. A reduction of 433,358 m³ (17%)compared to the total water consumption volume in the base year 2020. Water intensity in 2022 was 22.83% lower than 2020.

Environmental Management Targets and Implementation

Environmental Sustainability ▸