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MATERIAL TOPICS |
The LITEON Sustainability 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. LITEON’s major topic identification work is conducted at least every three years, and the last implementation year of the stakeholder sustainability issue survey is 2023. Material topics of the year and stakeholders will be examined on an ongoing basis and modified as needed every year by the Corporate Sustainability Committee.
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Validation |
- To ensure adherence to the GRI standards and the principles of stakeholder inclusiveness while enhancing the connection between this year's material topics and core competencies, the LITEON CS Committee, along with nine sub-committees, reviewed the findings from the initial identification of material topics. Informed by results from international benchmarking, sustainability trends, and LITEON's business development strategies, the committee refined the materiality of several topics. Notably, "circular economy," "ESG financial information," "human rights," "climate change and energy management," "supply chain risk management," and "green product design" were emphasized. Consequently, the topics "talent recruitment and retention," "innovation development and application," and "customer relationship management" were removed, while "corporate image" was introduced as a new material topic in 2023.
- A total of 13 sustainability topics were chosen from the "material topics" and "moderate topics" to define the scope of material disclosure for this report. In addition, we identified and addressed the GRI topics that relate to the material topics covered in the report.
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Material Topics Analysis |
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MATERIAL TOPIC MATRIX |
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Green Product Design
As global regulations and customer expectations shift toward low-carbon solutions, LITEON recognizes that product sustainability is a decisive factor in market success. The European Union’s Carbon Border Adjustment Mechanism (CBAM), effective from 2023, and similar emerging policies worldwide, are reshaping the competitive landscape. In response, LITEON has committed to reducing the carbon footprint of each new product generation by at least 5%, applying life cycle thinking (LCT) and full carbon footprint disclosure across all product categories.
To ensure continued progress, LITEON has set the following time-bound targets:
By 2025:
- Reduce the carbon footprint of next-generation products by ≥5% per cycle.
- Improve energy conversion efficiency of power supply products by 2% compared to the 2016 baseline.
- Increase UV-LED energy efficiency by 60% compared to 2018 (from 520mW to 830mW).
- Achieve a 98% waste conversion rate (UL2799 Gold).
- Reach a 50% steel recycling ratio.
- Ensure 100% certification for three types of marine waste materials.
By 2030:
- Ensure that ≥50% of materials used in products come from recycled or renewable sources.
These targets are supported by robust systems for tracking and disclosure. We have implemented advanced tools such as DoltPro and Ecoinvent to calculate emissions at the raw material stage and increased the use of post-consumer recycled (PCR) plastics in our products—reaching up to 85% in certain categories. Our development of marine waste plastics and low-carbon printed circuit boards (PCBs) further exemplifies our innovation in sustainable materials. To reinforce accountability, we introduced an internal carbon pricing mechanism (€100/ton for Scope 3 emissions), directly linking product design decisions to business unit profitability and executive incentives.
Progress to date: In 2024, LITEON achieved a >5% reduction in product carbon footprint per generation. We processed over 18 million carbon footprint activity records across 190,000 components and 3,300 products using AI-powered tools. Cumulative carbon reduction through green design reached 416,973 tons of CO₂e. PCR plastics now account for 53.95% of total plastic usage. We have initiated partnerships to increase recycled content in metals, including steel and copper, and our carbon intensity dropped to 0.87 tons CO₂e per NTD million revenue—a 19.77% improvement over 2023 and 57.39% over 2014.
Our internal carbon pricing mechanism is now fully operational, monetizing emissions and embedding carbon costs into business unit performance evaluations. This ensures that sustainability outcomes directly influence executive compensation, with 70% of performance metrics tied to ESG targets.
At LITEON, we remain steadfast in our mission to be a sustainable partner—driving innovation, exceeding regulatory and customer expectations, and shaping a future defined by environmental responsibility and low-carbon excellence.
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Sustainable Supply Chain Management
LITEON recognizes that its supply chain is both a strategic opportunity and a potential source of risk. With Scope 3 emissions representing the largest share of our carbon footprint, supplier performance is critical to achieving our decarbonization goals and maintaining operational resilience. To address this, we have embedded sustainability into our procurement strategy and supplier engagement programs.
To ensure measurable progress, LITEON has set the following time-bound targets:
By 2025:
- Achieve 10,000 tons of CO₂e reduction through supplier collaboration under the “555 Carbon Reduction Action.”
- Complete ESG audits for 100% of high-risk significant suppliers.
- Implement the ISO 20400 Sustainable Procurement Framework across all procurement personnel and business units.
- Establish a digital sustainability platform with two-way tracking for supplier improvement actions.
- Ensure 100% compliance with the Responsible Minerals Initiative (RMI), prohibiting sourcing from conflict zones.
- Organize regular technical seminars and sustainability training sessions for suppliers.
By 2027:
- Achieve an additional 20,000 tons of CO₂e reduction through expanded supplier collaboration.
These targets are supported by a comprehensive supplier assessment and development program. LITEON conducts both desk and on-site evaluations, prioritizes corrective action plans for suppliers with substantial ESG risks, and invests in capacity-building initiatives to elevate supplier performance.
Progress to date: In 2024, LITEON exceeded its initial CO₂e reduction target, achieving 14,983 tons of emissions reduction through collaboration with 30 Taiwan-based suppliers. ESG audits were completed for 100% of high-risk significant suppliers, and six suppliers with substantial negative impacts were supported through corrective action plans, with six terminations executed where remediation failed.
We also launched a digital sustainability platform to enhance transparency and track supplier improvement actions. A total of 156 suppliers participated in capacity-building programs, representing 27.8% of our significant supplier base. These programs included training on climate change, green design, circular economy, and responsible minerals sourcing.
By integrating sustainability metrics into procurement decisions and linking supply chain performance to executive compensation, LITEON ensures that environmental and social responsibility are treated as strategic imperatives. Our approach not only reduces operational risks and ensures regulatory compliance but also strengthens supplier relationships and long-term resilience.
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Climate Change Strategy and Energy Management
Climate Change Strategy & Energy Management
LITEON recognizes climate change as a material risk and opportunity that directly impacts our operations, cost structure, and long-term competitiveness. In response, we have developed a comprehensive climate strategy anchored in science-based targets and aligned with the Paris Agreement’s 1.5°C pathway. Our approach integrates transition and physical risk assessments, energy transformation, and carbon management across our global operations.
To ensure measurable progress, LITEON has set the following time-bound targets:
By 2025:
- Achieve a 39.3% reduction in Scope 1 & 2 GHG emissions intensity compared to the 2014 baseline.
- Improve product energy conversion efficiency through the adoption of third-generation semiconductors and recycled materials.
By 2033:
- Achieve a 58.8% reduction in Scope 1 & 2 emissions from the 2023 base year (SBTi 1.5°C target).
By 2034:
- Achieve validated Scope 3 emissions reduction targets under the SBTi framework.
By 2040:
- Reach 100% renewable electricity usage across all operations.
By 2050:
- Achieve Net Zero emissions across Scope 1, 2, and 3.
These targets are supported by the “555 Carbon Reduction Action,” which includes:
- A 5% annual reduction in organizational carbon intensity.
- A 5% reduction in product carbon footprint per generation.
- Full integration of internal carbon pricing into investment and supply chain decisions.
Progress to date: In 2024, LITEON achieved a 26.62% reduction in Scope 1 & 2 emissions compared to the previous year, and a 62.97% reduction versus the 2014 baseline. Our carbon intensity dropped to 0.87 tons CO₂e per NTD million revenue, representing a 19.77% improvement over 2023.
We implemented 40 energy efficiency projects, saving 15.53 million kWh and avoiding 30,148 tons of CO₂e. Renewable energy usage reached 33.9%, and we officially joined RE100, reinforcing our commitment to clean energy transition.
To ensure strategic alignment, we have deployed ISO 50001 energy management systems across 10 sites, and our internal carbon pricing mechanism (€100/ton for Scope 3 emissions) is now fully operational. Executive compensation is directly tied to climate performance, with 70% of performance metrics linked to ESG targets, ensuring accountability and driving results.
At LITEON, we remain committed to climate leadership—reducing emissions, enhancing energy efficiency, and building resilience against climate-related risks while contributing to a sustainable and low-carbon future.
LITEON aims to be the sustainable best partner for all stakeholders, creating maximum long-term value, both financially and non-financially. please refer to our Impact Analysis Report for more information.
