Realization of a Circular Economy
LITEON is committed to building a sustainable value chain and working with suppliers to develop sustainable materials with low carbon emissions, and building an industrial circular economy through innovative R&D technologies.
LITEON's green design team conducts extensive industry surveying and evaluation, with its goal set at high added value and high carbon reduction potential in materials, extensive inventorying of existing materials, and after locking in specific materials, conducting value engineering analysis and innovative technology R&D. In terms of the value chain, it enhances research on industrial symbiotic resources through supplier surveys and technical cooperation. We take green product design as our core concept, and we ultimately focus on the three major aspects of "co-product recovery", "circular souring" and "resource recovery". We cooperate with suppliers to create the basis of an industrial circular economy, and have proposed a number of green solutions, including the development of marine waste sustainable plastics, process resource utilization optimization technology, and the use of a high proportion of post-consumer recycled (PCR) materials in products.
Sustainable(low carbon) Material Development
Assessing and Prioritizing Raw Materials
LITEON has implemented a comprehensive program to assess and prioritize raw materials using a life cycle assessment (LCA) approach, in accordance with international standards ISO 14040/ISO 14044. This process involves detailed inventory compilation across five key phases: raw materials, manufacturing, transportation, usage, and disposal. In 2022, LITEON developed a carbon footprint inventory for 22 representative product categories, based on their shipment volumes and specifications, which served as a baseline for identifying carbon emission hotspots.
In 2023, the company introduced a feasibility assessment method to evaluate and formulate actionable carbon reduction plans for various products, with an ambitious target of reducing carbon emissions by 5% for the next generation of products. The inventory analysis identified that the main carbon emission hotspots during the raw materials phase primarily stem from printed circuit boards (PCBs), followed by plastic boards and metals. This analysis underscores the significant negative environmental impacts associated with the extraction and production of these materials, such as greenhouse gas emissions and potential degradation of ecosystems.
As a result of these assessments, LITEON has prioritized the development of low-carbon alternatives for these materials, addressing the material business risks related to sustainability. To achieve its sustainability goals, LITEON is focusing on developing low-carbon (biomass) PCB boards, carbon-fixation and lightweight marine waste plastics, as well as steel plates composed of over 50% post-consumer recycled (PCR) content. This strategic initiative not only targets reducing carbon emissions by 5% in the next generation of products but also mitigates the environmental risks linked to raw material procurement, thereby supporting various business units in their sustainability efforts.
Ensuring Traceability and Quality in Raw Material Sourcing
LITEON has implemented a comprehensive program for the traceability of raw materials to their origin, in accordance with its ISO 9001 Quality Management System (QMS). This program includes rigorous supplier management, with thorough assessment and selection processes to ensure reliable sourcing, complemented by regular audits for compliance. Additionally, LITEON conducts detailed inspection procedures to verify the quality of materials upon receipt, including checks of quality certificates. A systematic record-keeping system is in place to document the origin, batch numbers, and usage of raw materials for easy tracking. In the context of sustainable practices, LITEON has independently developed sustainable marine waste(ocean plastic) materials, such as LGS-7505, LGC-5505, and LGP-8005, all of which have received UL2809 traceability certification. Notably, LGS-7505 is the first material in the world to receive certification for ocean plastic (OP).
Furthermore, LITEON has clear procedures for handling non-conforming materials to ensure product quality and engages in continuous improvement to adapt the traceability system to market changes. Through these comprehensive measures, LITEON effectively ensures the traceability of raw materials, thereby protecting product quality and enhancing customer trust.
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Reducing Negative Environmental and Social Impacts
LITEON has implemented a program focused on reducing the negative environmental impacts associated with raw material production by developing various low-carbon materials. These innovative materials include low-carbon (biomass) PCB plates, ocean waste plastics, and post-consumer recycled (PCR) steel plates. The primary goal of these initiatives is to minimize the reliance on primary materials such as metals and plastics, which in turn reduces the need for mining and extraction of primary petrochemical resources. By utilizing these sustainable alternatives, LITEON significantly lowers the carbon footprint of its products, contributing to meaningful carbon reduction benefits and supporting broader environmental sustainability goals.
Regarding the reduction of negative social impacts from raw material production, LITEON actively manages due diligence for conflict minerals. We are committed to conducting thorough assessments to ensure responsible sourcing and mitigate any associated risks. For detailed information on our efforts and findings, please refer to our 2024 report.
Strategic Target Setting for Sustainable and Recycled Material Use
- LITEON operates on a B2B model and prioritizes the integration of sustainable materials that align with our clients' objectives. Our current goal is to ensure that by 2030, more than half of the materials used will come from recycled or renewable sources. Notably, specific products such as computer keyboards, enclosures, LED streetlights, and traffic signals currently incorporate up to 85% post-consumer recycled (PCR) plastic. LITEON is committed to increasing the proportion of PCR materials, particularly PCR plastics, across our product lines, with a goal to raise this share to 90% by 2025.
- LITEON has established a robust program aimed at increasing the share of sustainable raw materials in its production processes. The company targets the recovery of 200 metric tons of ocean-bound plastic each year, utilizing this material as a key component in its operations. Specifically, LITEON aims to incorporate 5% of ocean-bound plastic into the post-consumer recycled (PCR) plastics it uses, resulting in the production of nearly 4,000 metric tons of ocean-bound PCR plastic. Since 2018, LITEON has successfully collected a cumulative total of 1,000 metric tons of ocean-bound plastic. Looking forward, the company plans to achieve a target of utilizing 25% of sustainable ocean-bound plastics in its overall plastic consumption by 2030.
Progress Report on Sustainable Sourcing Initiatives
LITEON's Procurement Committee conducts an annual SWOT analysis of the metals and plastics used in our products, developing plans to increase the proportion of post-consumer recycled (PCR) materials sourced. The results of this analysis are reported directly to the General Manager, ensuring that progress is monitored at the highest level. Additionally, LITEON is committed to transparency with stakeholders by disclosing our sustainable sourcing progress in our annual sustainability report, which includes updates on the usage of sustainable materials in our products.
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In 2023, 24% of plastic materials used were recycled. For metals, the primary materials used in production are aluminum, copper, and steel, totaling approximately 48,900 tons for the year. Due to our ODM/OEM operating model, we currently have not been able to utilize recycled metals. However, in 2024, LITEON plans to collaborate with partners in the steel industry to develop recycled steel for product casings and structures. Additionally, the company intends to partner with Co-Tech Copper Foil Corporation to produce recycled copper foil for use in PCB boards. This initiative aims to increase the proportion of PCR metals, reduce the mining and usage of primary metal ores, and ultimately lower carbon emissions from our products. |
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Comprehensive Training and Collaboration for Sustainable Materials Promotion
In 2023, LITEON launched a program to promote sustainable (low-carbon) materials development through regular ROADSHOW presentations to all business units, with a minimum of one event per year. These sessions are integrated with training for new employees to ensure a comprehensive understanding of LITEON's environmental sustainability policies, particularly targeting colleagues involved in product development and related areas. To effectively promote our initiatives, LITEON collaborates with our procurement team to hold supplier conferences, where we share our ambitious 555 carbon reduction goals and provide educational training on critical topics such as international tariff trends and solutions for low-carbon recycled materials. This collaboration equips our procurement team with the necessary knowledge to communicate effectively with suppliers. Furthermore, we align with our sales teams during quarterly business reviews (QBRs) and quarterly training reviews (QTRs) so they can confidently advocate for our sustainable materials offerings when engaging with customers.
