Product Green Design and Management
Product Life Cycle Assessment and Improvement
LITEON conducts product life cycle assessments based on ISO 14040 and ISO 14044. The assessment framework evaluates environmental impacts associated with raw materials, manufacturing, transportation, product use, and end-of-life treatment.
LITEON began conducting product carbon footprint inventories in 2010 and has continuously expanded its assessment coverage across product categories. Product carbon footprint studies are conducted in accordance with ISO 14067:2018. Full LCA studies for representative products are independently verified, while simplified LCA and screening-level assessments are incorporated into product development through carbon hotspot screening and the Design for Environment checklist.
LCA coverage is measured by product line. In FY2025, LITEON had 663 product lines. Full LCA covered 66 product lines, representing 10.0% of the total, while Simplified LCA covered the remaining 597 product lines, representing 90.0%. The two assessment approaches are mutually exclusive, resulting in total product-line coverage of 100%.
In 2025, the cumulative carbon reduction achieved through LITEON’s green product design initiatives reached approximately 587,500 metric tons CO2e. The results covered raw material acquisition, manufacturing, distribution and transportation, product use, and end-of-life management.
| Product Life Cycle Stage | Cumulative Carbon Reduction | Key Improvement Measures |
|---|---|---|
| Raw Material Acquisition | 13,087.89 metric tons CO2e | Next-generation chips, component and circuit layout optimization, material reduction, product downsizing, low-carbon materials, and the use of post-consumer recycled materials |
| Manufacturing | 204.66 metric tons CO2e | Process optimization, automation, improved production efficiency, reduced processing time, increased yield, and lower manufacturing energy consumption |
| Distribution and Transportation | 5,594.71 metric tons CO2e | Product downsizing, packaging reduction and reuse, loading optimization, increased transportation utilization, and logistics management improvements |
| Product Use | 567,613.49 metric tons CO2e | Next-generation IC chips, circuit integration, optimized component layouts, improved power conversion efficiency, and enhanced LED light extraction efficiency |
| End-of-Life | 999.74 metric tons CO2e | Material reduction, design for disassembly and recycling, reduced electronic component use, and minimized use of non-recyclable materials |
| Total | Approximately 587,500 metric tons CO2e | Cumulative carbon reduction achieved through green product design as of 2025. |
Note: Carbon reduction calculations are based on shipment volumes and applicable carbon factors. The total is presented as a rounded figure.
Green Marks, Eco-Labels and Sustainable Revenue Disclosure
Product Environmental Labels and Declarations
LITEON supports product environmental transparency through environmental labels, energy-efficiency certifications, product carbon footprint declarations, and other independently verified environmental information. As many LITEON products are supplied under ODM and OEM business models, product labels may be obtained directly by LITEON or in cooperation with brand customers.
Type I environmental labels are independently verified against multiple environmental criteria across the product life cycle in accordance with ISO 14024. Single- or multi-attribute environmental labels verify specific environmental attributes, such as product energy efficiency.
| Classification | Label or Certification | FY2025 Scope |
|---|---|---|
| Type I Eco-Label | EPEAT | LITEON assisted customers in obtaining EPEAT Bronze registration for 19 enclosure products. |
| Single- or Multi-Attribute Eco-Labels | 80 PLUS, Taiwan Energy Label, and China Energy Conservation Certification | Third-party verified certifications covering defined product energy-efficiency requirements |
| Type III Environmental Declarations and Product Carbon Footprints | ISO 14025 and ISO 14067 | Verified environmental and carbon footprint information for representative product models |
In 2025, LITEON reported no incidents of non-compliance with laws and regulations concerning product and service information and labeling and received no customer complaints concerning product and service health and safety regulations.
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Sustainable Product and Service Classification
LITEON identifies sustainable products and services in accordance with the Taiwan Sustainable Taxonomy (2nd edition), with all activities contributing to climate change mitigation. Products and services are classified as sustainable if they meet at least one of the following criteria:
- Type I eco-labels (ISO 14024): EPEAT.
- Single/multi-attribute energy-efficiency eco-labels: 80 PLUS certification, China Energy Conservation Certification, Taiwan Energy Label, and ENERGY STAR, all based on third-party testing against defined energy-efficiency thresholds.
- Other Taxonomy-aligned activities: products and services meeting the technical screening criteria of the Taiwan Sustainable Taxonomy, including high-efficiency optoelectronic components, data center liquid cooling, energy storage and EV charging, and carbon management services.
Certifications that demonstrate only safety or regulatory compliance are excluded. To avoid double counting, each product is counted once, in the first applicable category above. Sustainable revenue is calculated from the annual external revenue of qualifying products and divided by consolidated revenue.
| NT$ million | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Type I eco-labels | 4,371.70 | 1,901.00 | 1,337.50 | 1,769.00 |
| Single/multi-attribute eco-labels | 7,447.54 | 11,445.51 | 17,857.78 | 25,207.47 |
| Other Taxonomy-aligned products and services | 20,734.57 | 17,323.19 | 17,149.72 | 17,807.49 |
| Total sustainable revenue | 32,553.81 | 30,669.70 | 36,345.00 | 44,783.96 |
| Share of consolidated revenue | 18.77% | 20.68% | 26.50% | 26.96% |
In 2025, sustainable revenue reached NT$44,783.96 million, accounting for 26.96% of consolidated revenue, up from 18.77% in 2022. LITEON targets sustainable revenue of 30% of consolidated revenue by 2030 and will continue to expand certified and Taxonomy-aligned product offerings.
Sustainable Products Program
LITEON’s Sustainable Products Program integrates sustainable product classification, life cycle assessment, green product design, product carbon footprint management, energy-efficiency improvement, hazardous-substance management, circular material use, environmental certification, and sustainable revenue tracking.
The program is supported by product development and design procedures, environmental design criteria, R&D resources, product carbon footprint assessments, internal carbon pricing, manufacturing and process improvements, supplier collaboration, employee training, and external product verification and certification.
Through this program, LITEON seeks to expand the development and market application of products and services that improve energy efficiency, reduce product carbon footprints, support resource circularity, prevent pollution, and contribute to climate change mitigation.
Investment, R&D, and Supporting Infrastructure
In 2025, LITEON allocated approximately NT$3.05 billion in R&D personnel and related operating expenditures to sustainable and lower-carbon product development. This represented approximately 35% of LITEON’s total R&D expenses and 14.3% of total operating expenses for the year.
These expenditures supported the development of energy-efficient products, low-carbon and recycled materials, circular design solutions, product carbon footprint assessment and verification, environmental certifications, and related sustainable product development activities.
LITEON also continued to strengthen supporting infrastructure, including product carbon management tools, material data management systems, product assessment capabilities, manufacturing process improvements, automation, and resource recovery processes. In 2025, LITEON invested approximately NT$6.11 million in establishing an on-site PCB recycling and resource recovery process, including recycling equipment and related facility and infrastructure upgrades.
Sustainable Product Sales and Incentive Mechanisms
LITEON promotes the market adoption of sustainable products through sales and business performance incentive mechanisms. Sales personnel responsible for eligible sustainable products participate in existing performance and variable compensation arrangements linked to the sales performance of the relevant offerings. For relevant business unit heads, green product revenue is incorporated into ESG performance indicators and considered in annual performance evaluations and incentive compensation. LITEON’s internal carbon pricing mechanism provides an additional business-unit-level financial incentive by providing internal carbon fee exemptions for products that meet applicable carbon reduction criteria. Together, these mechanisms encourage the development, promotion, and sales growth of eligible sustainable products and services.
