The LITEON Corporate Social Responsibility Report complies with the Global Reporting
Initiative (GRI) Standards. Material topics are analyzed by following the process of identification, prioritization, validation, and review to validate the scope of the disclosure
in the report as well as major internal/external sustainability challenges faced by the company. The process serves also as a comprehensive review of business performance.
Identification of material topics at LITEON is conducted in a three-year cycle. The latest cycle ended in 2020, hence a new stakeholder sustainability issues survey was conducted this year. Material topics of the year and stakeholders will be examined on an ongoing basis and modified as needed every year by the CSR Committee.
Identification
A list of 20 sustainability issues was compiled through the channels below to provide the
scope of material topics identification in the 2021 LITEON Sustainability Report.
List sustainability issues that would be of interest to different stakeholders based on the
experience of employees from everyday business activities and previous assignments.
Material topics for leading competitors around the world and international trends in
sustainability were examined.
To maintain the objectivity, integrity, and inclusiveness of material topics, the company
also looked back on the material topic matrix in the previous reports.
Prioritization
The process of sustainability topic prioritization by materiality is described as follows.
ESG issues are assessed by "the degree of impact of a company on the economy, the environment, and society" and "the degree of influence over stakeholders' assessment and decision-making processes."
In 2020, a total of 1,438 valid results were received in an internal and external questionnaire. The opinions of key stakeholders were studied through internal sub-committee meetings to make the assessment results more representative.
The degree of influence and impact of individual issues were measured and quantified to create a preliminary material topic matrix.
Validation
To ensure compliance with the GRI and stakeholder inclusiveness principles, and to strengthen the link between material topics of the year and core competencies, results of the preliminary identification of material topics are reviewed by the LITEON CS Committee. The committee also raises the degree of materiality for four topics, "Corporate governance and operations", "Integrity and compliance", "Climate change and energy management", and "Green product design" based on results of international benchmarking analysis, trends in sustainability, and LITEON's business development strategies.
Given the mission to become the partner of choice for customers developing smart technology innovations and applications worldwide, LITEON works hard to explore new opportunities and develop new products. Meanwhile, the internal policy is to follow "a human-centered growth strategy" and to strengthen human capital and retain talent more effectively. Hence, compared to the previous matrix, the degree of stakeholder interest and the degree of impact of "talent training and education" and "product quality and safety" both increased dramatically and became one of the material topics
of the year.
A total of 15 sustainability topics were selected from the "material topics" and "moderate topics" to be the scope of material disclosure in this report. We also identified and responded to the GRI topics corresponding to the material topics in the 2021 LITEON Sustainability Report.
Review
In the next report, we will continue to review the material topic matrix and engage stakeholders in further communication to determine if the material topic matrix for the coming year is reasonable or in need of adjustment.
2021 Material topics
Implications of material topics for LITEON
Progress towards our targets for material issues
For all the material issues, LITEON set mid to long term targets and strive to reach the goal. All the information are spread in our the Sustainability Report and here we list 3 major ones as follows.
Green Product Design
Target 🆕: All product categories conduct LCA by 2023 (on track, 73% completion by 2022)
Target 🆕: Reduce carbon emissions by 5% for the next generation of all products (kick off)
Target 🆕: 20% reduction of plastic in the packaging (from 1,000 tonnes down to 800 tonnes (on track, 203.1 metric tons reduced in 2021)
Target 🆕: Achieve 98% waste conversion rate (UL2799 Gold) by 2024 (on track, 1 site completed)
Target 🆕: Recycle 50% of steel by 2024 and achieve the goal of using recycled materials for more than 95 % of steel eventually (on track)
Target: Certified 3 sustainable materials used in LITEON’s products for a cumulative total of 15kton by 2025
Development and use of sustainable marine waste materials at the raw material stage LITEON has successfully developed three types of marine waste recycling materials in 2021, namly:
rPS-7-76(76% Ocean Plastic(OP)PS) HIPS
LGS-7505(PCR 75% ABS+ 5% OP PS)
LGP-8005(PCR 75% HIPS+5% OP PS)
Among them, 76% OP HIPS has passed the PCR certification of ISO14021, PCR 75% ABS+ 5% OP PS has passed the PCR certification of UL2809, and PCR 75% HIPS+5% OP PS is also applying for UL2809 certification. It is expected that these three kinds of marine wastes will be certified in 2025. Sustainable materials will be used in LITEON’s products, with a cumulative total of 15k ton, in order to reduce the mining and consumption of petrochemical raw materials caused by the use of virgin materials.
In addition, LITEON will continue to pay attention to international marine debris issues, and will continue to develop marine waste fishing nets (PA) and marine waste floating balls (ABS) related marine waste PCR plastic materials in 2022.
Target: Increase 2% energy conversion efficiency of power supply products compares with 2016 by 2025.
● 2021 performance: 5.31%
● 2020 performance: 4.56%
● 2019 performance: 1.80%
Targets: UV-LED energy efficiency to increase by 60% by 2025 compared to 2018
● 2021performance: 28.85%
● 2020 performance: 25%
● 2019 performance: 21.15%
Please refer to Green Product Management
Information security and personal Information Protection
Target 🆕: Re-inspected to maintain the validity of the ISO 27001 certificate each year (ontrack, 2021 completed)
Target 🆕: 100% of sites introduced to NIST8286 Standard (kick off)
Target 🆕: Provide the production environment that is 100% in accordance with IEC 62443 and NIST CSF information security (on track)
Target 🆕: Provide comprehensive information security analysis and early warning environment to 100% of LITEON's global factories and offices (on track)
Target: Zero complaints regarding the invasion of client privacy or loss of client data was received
● 2021performance: No complaint was received in 2021.
Target: 100% information environment in line with GDPR by 2025
● 2021 performance: Document completed.
Please refer to Information Security and Privacy Management
Climate change strategy and Energy management
Target: Reduce carbon emission per unit of revenue by 39.3% by 2025 compared to the base year 2014
● 2021 performance: -25.16%
● 2020 performance: -21.07%
● 2019 performance: -23.07%
Target: Reduce power consumption by 6% on an absolute basis by 2020 compared to year 2017
● 2021 performance: +7.45%
● 2020 performance: +8.33%
● 2019 performance: +3.53%
Please refer to Environmental Commitment and Policy
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