Climate Governance
LITEON works actively to strengthen governance in sustainable development and a sustainable environment. LITEON established a Corporate Sustainability (CS) Committee directly under the Board of Directors. The CS Committee is chaired by the board chairman (the Chief Sustainability Officer) and is composed of five independent directors. It is in charge of setting annual CSR targets in terms of the economic, environmental, and social aspects of the business. Progress is monitored regularly to ensure LITEON's continuing advancement toward sustainability and fulfillment of short-, medium-, and long-term goals. The CS Committee meets at least twice a year in accordance with LITEON's "Corporate Sustainability Committee Charter", and regularly reports implementation plans and results to the Board of Directors. Under the CS Committee there are the Environmental Sustainability, Risk Management and Sustainable Product Design subcommittees to improve environmental management efficiency, develop low-carbon product and manage environmental risks and opportunities.
- An Environmental Sustainability subcommittee which is led by the head of manufacturing, and is responsible for green operations at the plants, setting environmental targets, risk control, and the environmental target achievement survey. The environmental targets include energy-saving plans, GHG emissions, water-saving, waste reduction, etc. The subcommittee also analyzes the risks and opportunities from customers, local government and law enforcement.
- Sustainable Product Design subcommittee which is led by the head of Research and Design is responsible for low-carbon design and development.
- The Risk Management subcommittee which is led by the head of the operation identifies environmental risks and opportunities as one of the eight corporate risk management according to the significance rule. The Subcommittee tracks risks and opportunities of identification, impact assessment, and management indicators and reports to the CS Committee, Audit Committee and the board of Directors.
The Environmental Sustainability subcommittee which is led by the head of manufacturing, and is responsible for green operations at the plants, setting environmental targets, risk control, the environmental target achievement survey. The environmental targets include energy-saving plans, GHG emissions, water-saving, waste reduction, etc. The subcommittee also analyzes the risks and opportunities from customers, local government and law enforcement.
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Environmental Governance and Strategy
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 1.5 degrees Celsius. In 2019, LITEON set an 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 validated 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. In 2024, LITEON achieved the SBT and set an absolute scope 1 and 2 target. Reduce GHG emissions by 58.8% by 2033 using 2023 as the baseline year, and reduce average product carbon intensity by 63.8% by 2034 using compared to the base year 2023. The commitment is made also in support of the Commit to Action campaign launched by the CDP and We Mean Business Coalition.
"LITEON has always been concerned about the impact of products on environmental protection. It aims to achieve Net Zero emissions by 2050 by introducing new materials such as third-generation semiconductors to improve product conversion efficiency, and using recycled materials to reduce electronic waste and product carbon emissions, " said Anson Chiu, President of LITEON. 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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LITEON's Environmental Sustainable Road Map, Goal-Setting Plan and SBT Pathway
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TCFD Climate-Related Financial Disclosure Executive Summary
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Environmental Management Goals
Latest Progress on Management Targets
Item Sustainability Target 2023 Results 2024 Results 2025 Results Carbon Emissions and Energy Management Targets GHG Emissions Intensity Reduce Scope 1 and Scope 2 greenhouse gas emissions per NTD million of revenue by 39.3% by 2025 compared with the 2014 baseline year -46.98% -58.3% -66.9%
(Target Achieved)Absolute Scope 1 and Scope 2 GHG Emissions Reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 58.8% by 2033 compared with the 2023 baseline year - -26.62% -28.16% Net-Zero and Annual Carbon Intensity Reduction Achieve net-zero emissions by 2050, review carbon intensity reduction performance annually, and reduce carbon intensity by 5% annually starting from 2023 -46.98% -58.3% -66.9% Product Carbon Footprint Reduction Reduce the carbon footprint of each new product generation by 5% Completed the formulation and evaluation of carbon reduction plans Developed an internal carbon fee mechanism to accelerate carbon reduction initiatives Developed carbon reduction plans and review mechanisms Scope 3 Use-Phase Carbon Intensity Reduce the average use-phase carbon intensity of power products by 63.8% by 2034 compared with the 2023 baseline year - - -15.3% Absolute Electricity Consumption Reduce absolute electricity consumption by 6% by 2026 compared with the 2023 baseline year - +4.1% +15.9% Renewable Energy Achieve more than 50% renewable energy usage by 2028 28.3% 33.4% 39.6% Product Energy Efficiency Improvement Targets UV-LED Energy Efficiency Improve UV-LED energy efficiency by 60% by 2025 compared with 2018 41.42% 41.44% 51.26% Power Supply Energy Conversion Efficiency Improve the energy conversion efficiency of power supply products by 2% compared with 2016 8.17% 7.42% 8.55% Water Resource Management Targets Absolute Water Consumption Reduce absolute water consumption by 6% by 2026 compared with the 2023 baseline year - -2.37% +5.60% Water Intensity Reduce water intensity by 10% by 2025 compared with the 2020 baseline year -18.44% -12.94% -21.51%
(Target Achieved)Waste Management Targets Waste Generation Intensity Reduce waste generation per unit of revenue by 6% by 2025 compared with the 2022 baseline year -15.89% -20.54% -23.88%
(Target Achieved)Plastic Packaging Reduction Reduce plastic packaging usage by 300 metric tons by 2025 compared with the 2018 baseline year 270.7 metric tons 229.3 metric tons 851.77 metric tons
(Target Achieved)New Waste Intensity Target Reduce waste per unit of revenue by 6% by 2028 compared with the 2025 baseline year - - Baseline Year Note 1: Total electricity consumption increased in 2025 due to capacity expansion at the Vietnam and Taiwan facilities.
Note 2: Absolute water consumption increased in 2025 as revenue and operating activity increased.
Note 3: Changes in market demand and product shipment mix affected overall UV-LED energy efficiency performance. LITEON will continue promoting the adoption and optimization of energy-efficient products.
Note 4: The packaging optimization program was expanded to additional product models in 2025, resulting in a greater reduction in packaging usage. -
Net-Zero Transition Plan
LITEON's net-zero transition plan sets out how the Company will change its strategy, operations, products and value chain to support a low-carbon economy. It is aligned with the Paris Agreement goal of limiting global warming to 1.5°C. The plan is overseen by the Board-level Corporate Sustainability Committee and integrated into enterprise risk management and business planning.
Alignment with the Paris Agreement (1.5°C)
LITEON's transition pathway follows a 1.5°C-aligned decarbonization trajectory, consistent with the Paris Agreement.
- Net-zero: Net-zero GHG emissions across the value chain by 2050
- Scope 1 and 2: 58.8% absolute reduction by 2033 compared with 2023, on the 1.5°C pathway validated by the SBTi
- Scope 3: 63.8% reduction in the use-phase carbon intensity of power products (Category 11) by 2034 compared with 2023
- Renewable electricity: More than 50% by 2028 and 100% by 2040 (RE100)
2025 progress: Scope 1 and 2 emissions fell 28.16% compared with 2023; renewable electricity reached 39.6% of total electricity consumption; and the reduction in per unit product emissions.
Investment and Funding Target
In 2025, LITEON allocated 14.3% of annual operating expenditure (OpEx) to climate transition-related activities. The target is to raise this share to at least 15% by 2030. The funding supports:
- Renewable electricity procurement
- Energy-efficiency projects
- Climate-related R&D and low-carbon product development
- Supplier decarbonization programs
- Internal carbon pricing
- Carbon management systems
Key Decarbonization Levers
Scope 1
- Electrifying equipment, such as replacing diesel forklifts with electric forklifts
- Converting natural gas and LPG heating systems in dormitories to solar heating
- Process optimization and refrigerant management
Scope 2
- RE100 commitment, renewable electricity certificates, long-term green power purchase agreements and rooftop solar
- ISO 50001 energy management system certification at 10 sites
- 33 energy-efficiency projects in 2025, saving 8.97 million kWh
- 16 projects planned for 2026, targeting savings of 5.72 million kWh
Scope 3
- Internal carbon pricing on raw materials: Set at EUR 100 per tCO₂e in 2025. From 2026, the price follows the average EU ETS allowance price of the preceding year.
- Supplier programs: Supplier carbon inventories and the Low-Carbon Sustainable Supply Chain Integration Project
- Products: Product carbon footprint management, low-carbon and recycled (PCR) materials, and high-efficiency product design that reduces use-phase emissions. In 2025, product-use carbon emissions intensity was 0.0834 tonCO2 e/pc, representing a 15% reduction compared with the baseline year.
Stakeholder Engagement
Value chain
- Suppliers: Carbon inventory requirements, decarbonization guidance, ISO 20400 sustainable procurement training and supplier conferences
- Customers: Product carbon footprint data and joint development of low-carbon products
Industry peers, associations and initiatives
- Member of RE100 (Climate Group) and the Taiwan Climate Partnership (TCP)
- Shares decarbonization practices with peer companies
Government, public sector and civil society
- Provides input on renewable energy policy targets through industry associations
- Participates in government-funded low-carbon supply chain programs
- Collaborates with academic and research institutions on low-carbon technologies
Assessment of Social Implications and Just Transition
LITEON considers the social implications of its transition plan for employees and supply chain partners, guided by the principles of fairness, equity and the protection of human rights.
Employees: Through internal carbon pricing, carbon costs are reflected in business-unit performance, making decarbonization part of everyday decisions in R&D, procurement and manufacturing. This requires employees across functions to build new carbon management skills. LITEON supports this shift by reinvesting internal carbon fees in product carbon footprint tools and expertise, and by including carbon reduction in employee training programs, helping employees develop a carbon-embedded business mindset.
Supply chain: Rising decarbonization requirements may increase compliance costs for suppliers, particularly smaller suppliers with limited capabilities. LITEON identifies supplier needs through sustainability self-assessment questionnaires (SAQ) and supports suppliers through carbon inventory guidance, decarbonization projects and capability-building programs, enabling them to transition alongside LITEON rather than be excluded from the value chain.